Residual Interest

A type of interest payment received by investors in a real estate mortgage investment conduit (REMIC).

Investors receive interest payments after all required regular interest has been paid to investors within higher priority tranches. Residual interest functions much like common shares in that preferred shareholders receive all required dividends before any amount remaining is divided among common shareholders.

Investment dictionary. . 2012.

Look at other dictionaries:

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  • Real Estate Mortgage Investment Conduit — Real Estate Mortgage Investment Conduits, or REMICs, are a type of special purpose vehicle used for the pooling of mortgage loans and issuance of mortgage backed securities. They are defined under the United States Internal Revenue Code (Tax… …   Wikipedia

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