Legislation Would Modify REMIC Definition

The Commercial Mortgage Securities Association, the Mortgage Bankers Association and other real estate-related trade groups are eyeing proposed legislation that, if enacted, would modify the definition of a real estate mortgage investment conduit.

The three real estate trade associations are working to come up with proposals which they will then pool to decide if they're going to propose any changes, Dottie Cunningham, CEO of the CMSA, told NMN.

The legislation is currently pending in Congress as part of the American Jobs Creation Act of 2003. If passed, it would "modify the definitions of REMIC regular interests, qualified mortgages and permitted investments, so that certain types of real estate loans and loan pools can be transferred to, or purchased by, a REMIC," according to the CMSA.

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