Real Estate Mortgage Investment Conduit (REMIC)

A Real Estate Mortgage Investment Conduit (REMIC) is a special purpose entity (SPE) that is created to hold a pool of mortgages and issue securities backed by those mortgages. REMICs are regulated by the Internal Revenue Code (IRC) and are subject to certain requirements, such as the requirement that the assets of the REMIC be predominantly mortgages and that the REMIC must distribute at least 95% of its income to its investors.

REMICs are often used by institutional investors to invest in mortgage-backed securities. REMICs can offer a number of advantages over traditional mortgage-backed securities, such as the ability to issue multiple classes of securities with different maturities and coupon rates, and the ability to pass through losses to investors.

The first REMIC was created in 1986. Since then, REMICs have become a popular investment vehicle for institutional investors. As of 2019, there were over $1 trillion in REMICs outstanding.

Here are some of the key features of REMICs:

* REMICs are SPEs that are created for the purpose of holding a pool of mortgages and issuing securities backed by those mortgages.
* REMICs are regulated by the IRC and are subject to certain requirements, such as the requirement that the assets of the REMIC be predominantly mortgages and that the REMIC must distribute at least 95% of its income to its investors.
* REMICs can offer a number of advantages over traditional mortgage-backed securities, such as the ability to issue multiple classes of securities with different maturities and coupon rates, and the ability to pass through losses to investors.
* The first REMIC was created in 1986. Since then, REMICs have become a popular investment vehicle for institutional investors. As of 2019, there were over $1 trillion in REMICs outstanding.