To bring back liquidity and reduce uncertainty in non-economic residual interest (NER) trading in the real estate mortgage investment conduit (Remic) market, the Internal Revenue Service has issued alternative guidance to the safe harbor' rule in connection with transfers of NERs within Remics.

The guidance issued last week is an amendment to proposed changes to the safe harbor rule the IRS made in February, when it issued guidelines for financial asset securitization investment trusts (Fasits).

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