The fresh REMIC legislation maximum the types of costs you to a beneficial REMIC can get discovered and you may/otherwise spend
Incentive repayments to servicers and you may financial holders improve possible tax points to own mortgage loans included in securitizations you to definitely selected REMIC standing
As extra payments to help you servicers and you can mortgage people under the Amendment System aren’t contemplated by the REMIC statutes, it could be great for brand new Treasury Agencies so you can clarify that for example added bonus payments would not result in bad tax outcomes underneath the REMIC legislation.
Similar to the prospective tax issues with added bonus money chatted about a lot more than, the brand new shared commission getting created by the new Treasury Company below the fresh new Amendment Program plus introduces suspicion more if or not an excellent securitization choosing such as commission would have adverse income tax effects according to the REMIC guidelines. As such, it might be great for the fresh new Treasury Company to help you describe one to eg shared repayments from brand new Treasury Agency wouldn’t bring about adverse income tax consequences within the REMIC legislation.
- Options Whenever Modifications Aren’t effective. In the event the an amendment is not required beneath the Amendment Program and you may perhaps not if you don’t pursued, brand new servicer must search almost every other foreclosure avoidance selection, plus alternative amendment apps, deed-in-lieu of foreclosures and short revenue software. Concurrently, consumers that ineligible towards Refinancing Program and/or Modification Program may found a fees out of $1,five-hundred to have relocation expenditures to effectuate short conversion or deeds-in-lieu off property foreclosure. (mais…)
