If this new servicer safer harbor regulations or specific kind of it is introduced with the legislation, its unclear exactly how helpful it could be to require playing servicers to get to remove prohibitions to your loan modifications for the contracts
Once the incentive money so you’re able to servicers and you can mortgage proprietors underneath the Amendment Program aren’t contemplated because of the REMIC rules, it will be ideal for the latest Treasury Agencies so you’re able to explain you to definitely such as for instance bonus payments won’t cause negative taxation effects underneath the REMIC legislation.
Just as the potential tax difficulties with extra repayments discussed over, the brand new mutual fee is created by the fresh new Treasury Department significantly less than brand new Modification System and additionally brings up suspicion more than if or not a great securitization finding such commission will have adverse income tax outcomes according to the REMIC laws and regulations. As such, it would be helpful for the new Treasury Agencies so you’re able to describe one such as for example mutual costs made by the fresh new Treasury Institution wouldn’t trigger negative taxation consequences beneath the REMIC laws.
Incentive repayments so you can servicers and you will home loan proprietors increase possible tax issues to own mortgage loans found in securitizations one to decided https://paydayloansconnecticut.com/lakeside-woods/ REMIC standing
- Selection When Variations Aren’t effective. If an amendment is not required under the Amendment Program and you will not otherwise pursued, new servicer is needed to find other foreclosure protection alternatives, as well as choice amendment applications, deed-inlieu away from foreclosure and you may small product sales applications. Continue lendo “The latest REMIC laws and regulations restrict the sorts of repayments one to a great REMIC could possibly get receive and/or spend”
