GuideFoot - Learn Together, Grow Smarter. Logo

In Business / College | 2025-07-03

What is a real estate mortgage investment conduit (REMIC)?
A company that owns, and usually operates, income-producing real estate.
An entity used to pool mortgage loans and issue mortgage-backed securities.

Asked by hayboo3

Answer (2)

A REMIC is an entity that pools mortgage loans to issue mortgage-backed securities, benefiting both investors and the housing market. It allows for cash flows to be segmented into different risk classes, making it adaptable to investor needs. REMICs also enjoy tax advantages, which contribute to their role in the mortgage finance system. ;

Answered by GinnyAnswer | 2025-07-03

A Real Estate Mortgage Investment Conduit (REMIC) pools mortgage loans to issue mortgage-backed securities, facilitating investment in real estate. It segments cash flows into different tranches to meet investor needs and enjoys tax benefits. Overall, REMICs are vital for enhancing liquidity in the mortgage finance market.
;

Answered by Anonymous | 2025-07-04

Related Questions in Business

📝 Answered - When the yield to maturity of a bond goes up, the price typically: A. is determined by market factors B. goes down C. does not change D. goes up

📝 Answered - A type of life insurance policy that requires premiums only for a specified number of years or to a specific age is called a: A. term life policy B. limited pay policy C. key man insurance policy D. split dollar policy

📝 Answered - Which of the following correctly explains how the concept of demand affects the change in use of credit? Select the two correct answers. A. High interest rates yield low demand for credit. B. Low interest rates yield high demand for credit. C. High interest rates yield high demand for credit. D. Low interest rates yield low demand for credit. E. Both low and high interest rates yield low demand for credit because consumers see it as an indicator that the market is not in equilibrium. Demand is highest when rates are neither too high nor too low.

📝 Answered - A company is researching mining at four different land areas using different types of equipment. The table below shows the costs of land, equipment, mining, and reclamation for the four locations: | Locations | Cost of land | Cost of equipment | Cost of mining and reclamation | Time taken to mine the area | | --------- | ------------ | ----------------- | -------------------------------- | --------------------------- | | 1 | $100,000 | $10,000 | $5,000 per day | 30 days | | 2 | $35,000 | $6,000 | $4,500 per day | 45 days | | 3 | $30,000 | $7,500 | $3,500 per day | 120 days | | 4 | $40,500 | $8,000 | $7,000 per day | 65 days | Considering all costs, which location will cost the least for the company to mine? A. Location 1 B. Location 2 C. Location 3 D. Location 4

📝 Answered - Internal-operational communications are messages that A. are circulated both inside and outside a business B. get an organization's work done C. are sent between competing organizations within the same industry D. employees send to discuss strictly personal matters