Added bonus payments to servicers and mortgage people increase potential taxation circumstances to own mortgage loans used in securitizations you to definitely select REMIC position
Because the bonus payments so you can servicers and you can financial holders according to the Modification Program commonly considered by the REMIC rules, it would be great for the Treasury Department so you’re able to explain one including incentive payments won’t cause negative tax effects according to the REMIC statutes.
Much like the potential income tax complications with incentive payments talked about above, brand new common fee getting created by the Treasury Department less than brand new Modification Program and additionally raises uncertainty over if an effective securitization researching eg commission will have unfavorable taxation consequences within the REMIC rules. As such, it will be ideal for brand new Treasury Institution so you’re able to explain that such as for example common money from this new Treasury Agency would not lead to negative taxation outcomes under the REMIC regulations.
- Choices Whenever Changes Don’t work. If an amendment isn’t needed in Amendment System and you can maybe not if not pursued, new servicer must look for most other foreclosure protection solutions, together with choice modification applications, deed-in-lieu out-of foreclosure and quick marketing applications.