Forms
A REMIC can issue mortgage securities in a wide variety of forms: securities collateralized by Government National Mortgage Association (Ginnie Mae) pass-through certificates, whole loans, single class participation certificates and multiclass mortgage-backed securities; multiple class pass-through securities and multiclass mortgage-backed securities; multiple class pass-through securities with fast-pay or slow-pay features; securities with a subordinated debt tranche that assumes most of the default risk, allowing the issuer to get a better credit rating; and Collateralized Mortgage Obligations with monthly pass-through of bond interest, eliminating reinvestment risk by giving investors call protection against early repayment.
Read more about this topic: Real Estate Mortgage Investment Conduit
Famous quotes containing the word forms:
“Our normal waking consciousness, rational consciousness as we call it, is but one special type of consciousness, whilst all about it, parted from it by the filmiest of screens, there lie potential forms of consciousness entirely different.”
—William James (1842–1910)
“The blood weeps from my heart when I do shape,
In forms imaginary, th’ unguided days
And rotten times that you shall look upon
When I am sleeping with my ancestors.”
—William Shakespeare (1564–1616)