Florida Real Estate Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

What is a real estate mortgage investment conduit (REMIC)?

A company that owns, and usually operates, income-producing real estate

An entity used to pool mortgage loans and issue mortgage backed securities

A real estate mortgage investment conduit (REMIC) is a type of entity that pools together mortgage loans and issues mortgage-backed securities. This allows the risk to be spread out over a larger group of investors, making it a less risky investment compared to investing in an individual mortgage. Therefore, options A, C, and D, which all involve a single entity or organization managing or owning real estate properties, are incorrect. REMICs are specifically used for pooling and securitizing mortgages, making option B the correct answer.

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An organization that manages income producing real estate properties

An organization with many investors who jointly participate in a real estate investment

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