Wall Street Rules Applied to REMIC Classification

Abstract:     
Investors in mortgage-backed securities, built on the shoulders of the tax-advantaged Real Estate Mortgage Investment Conduit (“REMIC”), may be facing extraordinary tax losses because of how bankers and lawyers structured these securities. This calamity is compounded by the fact that those professional advisors should have known that the REMICs they created were flawed from the start. If these losses are realized, those professionals will face suits for damages so large that they could put them out of business.

Number of Pages in PDF File: 14

Keywords: mortgage-backed securities, Real Estate Mortgage Investment Conduit, REMIC, MERS, Mortgage Electronic Recording System, double taxation, tax-advantaged, MBS

Accepted Paper Series