Tax Law Updates | New Statutes, Regulations, and Rulings
January 7, 2010
New IRS Regulations Expand List of Permitted Loan Modifications to Include Evolving Practices in Commercial Mortgage Industry
Modifications of Commercial Mortgage Loans Held by a Real Estate Mortgage Investment Conduit (“REMIC”)
26 CFR Parts 1 and 602, TD 9463, RIN 1545-BG77, 9/16/2009
The Internal Revenue Service (“IRS”) has issued final regulations that expand the list of permitted loan modifications to include certain modifications that are often made to commercial mortgages..
According to the IRS, changes to the regulations are necessary to better accommodate evolving practices in the commercial mortgage industry. These changes will affect lenders, borrowers, servicers, and sponsors of securitizations of mortgages in Real Estate Modification Mortgage Investment Conduits (“REMICs”).
These regulations took effect on September 16, 2009.
The IRS explained that its issuance is required in order to show that certain modifications to mortgages permitted by this final regulation will not…
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