REMIC Armageddon on the Horizon?

This was before we found Rehypothecation in the securities scheme. Add that to the mix and the banks’ intent to permanently destroy homeownership becomes crystal clear. As long as we allow Congress to get away with ignoring the necessity of regulation – we are acknowledging and accepting the destruction of an integral part of the American life and human rights.

Deadly Clear

explosionIt’s about time somebody recognized it.  David Reiss and Brad Bordon posted a dynamic review of the most recent ‘slap down the banks’ cases of Saldivar and Erobobo and the potential impact on the [failed] REMIC tax shelters in REFinBlog.

David Reiss writes: “Brad Borden and I have warned that an unanticipated tax consequence of the sloppy mortgage origination practices that characterized the boom is that MBS pools may fail to qualify as REMICs.  This would have massively negative tax consequences for MBS investors and should trigger lawsuits against the professionals who structured these transactions. Courts deciding upstream and downstream cases have not focused on this issue because it is typically not relevant to the dispute between the parties.

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2 thoughts on “REMIC Armageddon on the Horizon?

  1. Ginny:

    As I recall, the banks had buried in the AG settlement a waiver of REMIC liabilities for the securitized trusts.


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    • Why would they ‘waive’ what they clearly won’t admit to . . .!

      REMIC waiver – why would they even suggest or make reference to REMIC/Securities Trust in settlement re ‘mortgages’ if they deny there is a connection . . . what are the liabilities (or threats) they are actually trying to ‘waive’ – an interesting subject. REMIC waiver for these clowns . . . my toosh . . .admit first – waive later!

      BTW: The show with Virginia Parsons and Wendy (attorney) on Feb 22nd was very, very informative – please have them on more often to continue the discussion – looking forward to re-listening to the show. Thanks guys!

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