Thursday, April 28, 2011

More Trouble for the Banks re: Mortgages

Awww, geeee....

The Internal Revenue Service has launched a review of the tax-exempt status of a widely-held form of mortgage-backed securities called REMICs.

The IRS confirmed to Reuters that the review comes in response to mounting evidence that banks violated tax requirements by mishandling the transfer of mortgages to REMICs, short for Real Estate Mortgage Conduits. --Ticker quoting Reuters

The tax penalties could be (get this) one hundred percent of earnings on the REMICs.

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