Mortgage Company Addresses REMIC Eligibility of FHA-Backed Hospital Loans
Mortgage Company Addresses REMIC Eligibility of FHA-Backed Hospital Loans
- AuthorsWessel, Peter A.
- Institutional AuthorsAmeriSphere Mortgage Finance LLC
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2007-18412
- Tax Analysts Electronic Citation2007 TNT 153-14
From: Peter Wessel [ pwessel@amerisphere.net ]
Sent: Friday, August 03, 2007 8:15 PM
To: Novey, Michael
Cc: TED_B._FOSTER@HUD.GOV; jerry.gross@hud.gov; Davies, Katherine A; Roger_E._Miller@HUD.gov; karen.cady@credit-suisse.com; Mazer, Mike; Desmond, Michael; Baker Susan Thompson; Imholtz Diana
Subject: RE: REMIC-eligibility of FHA Section 242 insured hospital loans
Attachments: 2007.08.03 -- REMIC -- Novey letter.pdf
Please see attached letter.
Amerisphere Mortgage Finance,
L.L.C.
Denver, CO 80203-4357
VIA E-MAIL: Michael.Novey@do.treas.gov
Michael Novey
Associate Tax Legislative Counsel
US Department of the Treasury -- Room 1041A
1500 Pennsylvania Avenue NW
Washington, DC 20220
RE: REMIC-eligibility of FHA Section 242 insured hospital loans
Dear Mr. Novey:
Thank you for taking time earlier this week to meet with private and public sector representatives interested in promoting the REMIC-eligibility of FHA Section 242 insured hospital loans and Ginnie Mae mortgage pass-thru certificates collateralized by such loans ("FHA 242 Loans").
We appreciate the willingness you displayed in trying to resolve the current regulatory impediments to the REMIC-eligibility of FHA 242 Loans. It appears that we are all in agreement respecting public policy -- that it would be in the public interest to facilitate lower interest rates to hospital borrowers via the securitization of FHA 242 Loans in REMICS. How to best accomplish that objective remains the issue.
We discussed several options during our meeting, including: a) a regulatory change proposed by Ginnie Mae that all Ginnie Mae guaranteed financial instruments be deemed REMIC eligible, b) a proposal from an ad hoc task force of FHA approved mortgage bankers and REMIC sponsors of a regulatory carve-out for FHA 242 Loans, and c) a proposal from you of a possible safe harbor test at initial loan closing that would create a presumption of REMIC eligibility subject to a material change exception.
We believe that any solution must satisfy all of the following "guiding principles" which surfaced in our discussions:
1) Ginnie Mae needs uniformity, certainty and ease of determining compliance with REMIC regulations.
2) REMIC sponsors need to be able to accurately assess risk, so they can commit to pricing accordingly.
3) Mortgage bankers need to be free from risk of repurchase obligation or re-pricing due to REMIC eligibility once the loan is sold.
4) HUD needs flexibility to respond to hospitals' needs for loan restructuring without undue constriction.
5) Treasury needs to assure compliance with statutory authorization and Congress' intent.
6) Hospitals need certainty of execution at competitive rates and terms.
We also believe that the most expeditious way to achieve our objective is to reach agreement with the Department of Treasury on a regulatory solution. In any case, this is an issue that merits timely attention and we are interested in reaching closure with you.
Peter A. Wessel
Chairman
Ad hoc FHA 242 REMIC Task
Force
Ted Foster, Ginnie Mae
Jerry Gross, US Department of Housing & Urban Development
Katherine Davies, US Department of Housing & Urban Development
Roger Miller, US Department of Housing & Urban Development
Karen Cady, Credit Suisse First Boston
Michael Mazer, Committee on Healthcare Financing
Michael Desmond, US Department of the Treasury
Susan Baker, Internal Revenue Service
Diana Imholtz, Internal Revenue Service
- AuthorsWessel, Peter A.
- Institutional AuthorsAmeriSphere Mortgage Finance LLC
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2007-18412
- Tax Analysts Electronic Citation2007 TNT 153-14