Wall Street Rules Applied to REMIC Classification
Thomson Reuters News & Insight, September 2012
14 Pages Posted: 16 Sep 2012 Last revised: 30 Sep 2012
Date Written: August 31, 2012
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.
Keywords: mortgage-backed securities, Real Estate Mortgage Investment Conduit, REMIC, MERS, Mortgage Electronic Recording System, double taxation, tax-advantaged, MBS
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