Real Estate Mortgage Investment Conduit - REMIC
What is 'Real Estate Mortgage Investment Conduit - REMIC'
A special purpose vehicle (SPV) that is used to pool mortgage loans and issue mortgage-backed securities (MBS). Real estate mortgage investment conduits (REMIC) hold commercial and residential mortgages in trust, and issue interests in these mortgages to investors.
BREAKING DOWN 'Real Estate Mortgage Investment Conduit - REMIC'
Similar to collateralized mortgage obligations (CMOs), REMICs piece together mortgages into pools based on risk, and issue bonds or other securities to investors. These securities then trade on the secondary mortgage market.