Definition:
Real Estate Mortgage Investment Conduits (REMICs) are prodcuts that create a type of structuring of mortgage pass-through securities that redistribute cash flows due to market demands.
Reporting:
Holders of REMICs that are US persons must report interest income on an accrual basis as though the interest were issued as an original issue discount (LINK TO OID) instrument.
Withholding:
Holders of REMICs that are non-US persons likely will not see NRA withholding until a payment is made. Geneally, REMICs are treated as debt obligations that generate interest that is eligible for the portfolio interest exemption (LINK TO PIE). See Page 24