Real Estate Mortgage Investment Conduit REMIC Income Tax Return Form

Instructions and help about Real Estate Mortgage Investment Conduit REMIC Income Tax Return

a real-estate investment conduit otherwise known as a REMIC is essentially a partnership but it's a very special very restricted partnership it essentially allows the pooling of mortgages and the sale of interests in those mortgages like you would sell partnership interests so if you are interested in investing in a residential mortgage your choices would be to go to the go to the bank and say look I like to buy a couple of your mortgages and now I own them or go to an organization you're usually a banker a mortgage company or other financial institution that has formed a REMIC and in that case you can acquire an undivided interest in their whole pool of mortgages you like I say it's a partnership and so it can be structured in a way that is not all the interests need to be the same but it's very very very restricted and it's restricted to the point where if you if the REMIC does things that it's not supposed to do it's subject to a hundred percent tax which is pretty significant penal