Tips for In-House Counsel
December 17, 2009
IRS Liberalizes Rules for Restructuring Mortgages Held by REMICs
By Patrick Del Duca, H. Jacob Lager and Michael J. Zerman of Zuber & Taillieu LLP
INTRODUCTION
The Internal Revenue Service and the U.S. Department of Treasury recently published new guidance to provide more flexible and proactive options for restructuring securitized commercial loans held by Real Estate Mortgage Investment Conduits (REMICs). The new liberalized rules should create maneuverability for REMIC investors facing the expected wave of commercial mortgage defaults. The new rules provide safe harbor guidelines, which enable loan servicers to restructure potentially troubled mortgages before they enter default or foreclosure.
What is a REMIC?
Real Estate Mortgage Investment Conduits (REMICs) are investment vehicles that pool residential and commercial mortgage loans and issue mortgage-backed securities to investors.…
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About the Authors
Patrick Del Duca is a Partner of Zuber & Taillieu LLP, focusing on corporate/commercial, environmental and international law.
H. Jacob Lager is a Partner of Zuber & Taillieu LLP, focusing on tax law.
Michael J. Zerman is a Partner of Zuber & Taillieu LLP, focusing on real estate law.