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Many of us just assume that mortgages are owned by banks. Upon closer investigation, the true ownership of home mortgage may come as a surprise to homeowners. What may be even more surprising is that many industry practices violate federal and state laws. A recent filing in the US District Court of Hawaii looks to shed light on the subject. With big players involved like Deutsche Bank, OneWest Bank, CIT Bank, MERSCORP Holdings, and Ocwen Financial Corporation,the case promises to be illuminating.
Real Estate Mortgage Investment Conduit (REMIC) also known as Collateralized mortgage obligations (CMOs), are mortgage pass-through securities that are pooled together to create collateral, as well as provide tax advantages to both the issuers of these loans and the investors. When the Tax Reform Act of 1986 passed, CMOs were now alternatively created under the name of REMICs.