What is a REMIC? | Definition of a Real Estate Mortgage Investment Conduit

Have you ever heard of the abbreviation of REMIC? Do you have a good grasp as to what exactly a REMIC is? A REMIC is a real estate mortgage investment conduit. It is a special type of entity. This entity is such that it will hold a pool of mortgages, a fixed amount. It will also issue several different types of classes of interest to investors.

In terms of the Internal Revenue Service, they look at a real estate mortgage investment conduit and see it as a type of partnership. For federal income tax purposes, a partnership and its tax rules are where this will play. Income ends up being passed to the interest holders as part of the REMIC. A REMIC is a type of entity with a focus on the pooling of mortgage loans, as well as putting out securities backed by mortgages as well. Aplpy online to obtain a tax ID for your REMIC today.