IRS Tightens Rules on Transfers of ‘Noneconomic’ REMIC Residuals; Traders Don’t Expect Disruption
July 26, 2002
The new Internal Revenue Services regulations on the transfer of so-called non-economic residual interests in real estate mortgage investment conduits are not expected to disrupt that market. In a final rule published in the July 19 Federal Register, the IRS said that if non-economic residual interests of a REMIC are transferred to a foreign entity, it is not eligible for the “safe-harbor