Real Estate Mortgage Investment Conduit. A REMIC is a type of special purpose vehicle comprised of: A REMIC is a type of special purpose vehicle comprised of a pool of mortgage loans sold as investment-grade bonds known as mortgage-backed securities. Clara starts a new brokerage.
What is a real estate mortgage investment conduit Remic quizlet?
A real estate mortgage investment conduit (REMIC) is a special purpose vehicle that is used to pool mortgage loans and issue mortgage-backed securities. REMICs were first authorized by the enactment of the Tax Reform Act of 1986.
What is the benefit of putting your money to work quizlet?
It allows you to accumulate money for future purchases and it can be put to work by earning income since it can earn interest when put into a financial institution.
What is a mortgage quizlet?
mortgage. a loan for the purpose of buying property, usually paid in payments of principal (amount borrowed) and interest over a period of from 15 to 30 years. equity. the difference between what a house (or property) is worth, and what is owed on the mortgage.
What is a mortgage-backed security quizlet?
A mortgage-backed security (MBS) is a type of asset-backed security that is secured by a mortgage, or more commonly a collection (“pool”) of sometimes hundreds of mortgages. … Pass-through securities issued by Freddie Mac, Fannie Mae and Ginnie Mae trade in the TBA market.
How does Remic lose value?
A REMIC may be subject to disqualification as a REMIC unless it is able to satisfy a 1% safe harbor for de minimis non-qualifying assets. If a REMIC does not satisfy such 1% safe harbor, the REMIC may lose its tax status as a REMIC and become taxable as a corporation.
What is the CFPB’s role when it comes to the property report?
We protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law. We arm people with the information, steps, and tools that they need to make smart financial decisions.
What is the benefit of putting your money to work?
Another advantage of investing your money is that it gives you a chance to reduce your taxable income. Certain retirement accounts, such as a 401k and a traditional IRA allow you to deduct the amount you contribute from your income for the year. You do have to pay taxes on the amounts and their earnings in retirement.
How does compound interest make your money work for you quizlet?
Compound interest will make a deposit or loan grow at a faster rate than simple interest. It’s because of this that your wealth can grow exponentially through compound interest, and why the idea of compounding returns is like putting your money to work for you. How are checking and savings accounts different?
Which would be an example of an investor making a high risk investment?
Example #1 – Hedge Funds
A hedge fund is an investment fund. It supports various assets providing high returns in exchange for higher risk through multiple risk management and hedging techniques.
What does the mortgage allow the mortgagee quizlet?
The mortgage (or deed of trust) is known as the security instrument. The security instrument creates the lien on the property. The mortgage allows the lender to sue for foreclosure in the event the borrower defaults.
What does Subject to the mortgage mean?
In its simplest form, the “subject to” in a subject to mortgage refers to the loan that’s already in place. … That means the seller maintains the responsibility of paying off the loan, but the buyer has agreed to make mortgage payments on behalf of the original seller.
What is a fixed rate mortgage quizlet?
With a fixed-rate mortgage, the borrower will pay the interest rate agreed to at the outset throughout the entire term of the loan. … When a borrower takes out an ARM, the lender sets the loan’s interest rate based on market interest rates at that time.
What type of security is mortgaged back security?
A mortgage-backed security (MBS) is an investment similar to a bond that is made up of a bundle of home loans bought from the banks that issued them. Investors in MBS receive periodic payments similar to bond coupon payments.
What are mortgage backed securities group answer choices?
Mortgage-backed securities, called MBS, are bonds secured by home and other real estate loans. They are created when a number of these loans, usually with similar characteristics, are pooled together. For instance, a bank offering home mortgages might round up $10 million worth of such mortgages.
What was the Federal Reserve System quizlet?
Federal Reserve System. The country’s central banking system, which is responsible for the nation’s monetary policy by regulating the supply of money and interest rates. Monetary Policy. F.E.D’s tools to influence economy: open market operations, discount rate changes and reserve requirements.