IRS Says Mortgage Excess Servicing Spreads Are ‘Real Estate Assets’ Under REIT Tax Law
August 1, 2013
Mortgage real estate investment trusts can draw some guidance from a recent private-letter ruling from the Internal Revenue Service on whether excess spread on mortgage servicing rights can be deemed as real-estate assets for REIT purposes. According to a recently released IRS private-letter ruling dated April 12, certain excess servicing rights would constitute a real-estate asset, and income from the spread would be treated as interest on obligations secured by mortgages on real property, for purposes of tax rules governing REITs. MSRs generally represent...
The new FHFA director’s whirlwind first week resulted in widespread staffing cuts at the regulator and a dramatic change in leadership at the GSEs. So far, criticism has been muted.
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