Senate’s Proposed Tax Cut Legislation Would Eliminate Seldom-Used FASIT Structures
May 16, 2003
The Senate Finance Committee voted late last week to eliminate the financial asset securitization trust, or FASIT, a tax structure that was created in 1996 to facilitate the securitization of various assets that don’t qualify for REMIC treatment. While FASITs have found limited use in the securitization market, they caught the attention of Congress because the structure was used in two tax-motivated transactions undertaken by