Private Letter Ruling 201601005 Released December 31, 2015 Approved

Mortgage settlement payments preserve REMIC status and interest classifications

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This page covers one taxpayer's ruling from 2015, which can't be cited as precedent. Ezel answers your situation under the current Code and IRS guidance, with citations.

Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.

About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.

View official IRS release (PDF)

Plain-English summary

A trustee for numerous residential mortgage REMICs entered a court-approved settlement over alleged breaches of loan representations, warranties, and servicing duties. The settlement allocated payments among the REMICs based on their past and expected mortgage losses and also required servicing improvements and fee adjustments. The IRS ruled that the settlement rights and payments would not cause the REMICs to fail the qualified-mortgage asset test, and that each allocated payment would be treated as received on qualified mortgages. It also ruled that distributing the payments under the governing agreements would preserve the regular and residual interest classifications, and that the payments and servicing fee adjustments would not be prohibited transactions or taxable post-startup contributions. The ruling assumed valid, continuing REMIC elections and did not independently decide whether each entity or mortgage otherwise qualified under the REMIC rules.

Ruling snapshot

Question: How do mortgage settlement payments and servicing fee adjustments affect the REMICs’ asset status, interest classifications, and prohibited-transaction rules?
Outcome: Approved
Key authorities: IRC §§ 860D(a)(4), 860F(a), 860G(a), 860G(d); Treas. Reg. §§ 1.860D-1(b), 1.860G-1, 1.860G-2

Full text (IRS public release)

Internal Revenue Service Department of the Treasury
Washington, DC 20224

Number: 201601005 Third Party Communication: None
Release Date: 12/31/2015 Date of Communication: Not Applicable
Index Number: 860D.00-00
Person To Contact:
--------------------------- --------------------, ID No. -----------------
------------------------- Telephone Number:
-------------------------------------------------------- ---------------------
--------------------------------------- Refer Reply To:
---------------------------------- CC:FIP:B01
PLR-113051-15
Date:
October 05, 2015

Legend:

Trustee = ----------------------------------------

Taxpayer A = ----------------------------------

Taxpayer B = -----------------------------------------------

State = -------------

Company A = ----------------------------------------------

Company B = ---------------------------------------------------------

Company C = -----------------------------------------

Company D = -------------------------

Company E = ------------------------

Company F = -----------------------

Company G = -----------------------------

Company H = -------------------------------------------
PLR-113051-15 2

Company I = ---------------------------------------

Company J = ------------------------------

Exchange = ------------------------------------

Year 1 = -------

Year 2 = -------

Year 3 = -------

Month 1 = -------

Month 2 = --------------

Date 1 = -----------------------

Date 2 = -------------------

Date 3 = -------------------

Court 1 = --------------------------------------------------------------------------------

                                ------

Court 2 = --------------------------------------------------------------------------------

A = --------------

B = ---

C = -------------

Dear -------------------:

   This letter is in reply to a letter dated April 8, 2015 and subsequent

correspondence in which Trustee, solely in its capacity as trustee or indenture trustee of
each real estate mortgage investment conduit (“REMIC”) identified in Appendix A (each
a “Taxpayer” and, collectively, the “Taxpayers”), requests certain rulings in connection
with each Taxpayer’s qualification as a REMIC under Sections 860A-860G of the
Internal Revenue Code. Specifically, you have asked for the following rulings:
PLR-113051-15 3

    1. In the case of each Taxpayer for which a timely, valid and continuing REMIC
    election has been made in accordance with the applicable Governing Agreement
    (as defined below), none of (i) the execution of the Settlement Agreement (as
    defined below), (ii) the methodology for determining, and the right to receive, an
    Allocable Share (as defined below) of the Settlement Payment (as defined
    below), (iii) the receipt of an Allocable Share of the Settlement Payment, or (iv)
    the reduction of unreimbursed advances owed to the Master Servicer (as defined
    below) attributable to any Master Servicing Fee Adjustment (as defined below)
    (or, in the case of Taxpayer A and Taxpayer B, the receipt of any Master
    Servicing Fee Adjustment) will cause the Taxpayer to fail to meet the
    requirements of Section 860D(a)(4).

    2. In the case of each Taxpayer for which a timely, valid and continuing REMIC
    election has been made in accordance with the applicable Governing Agreement,
    the receipt of an Allocable Share of the Settlement Payment will be treated as a
    payment received on qualified mortgages within the meaning of Section 1.860G-
    2(g)(1)(ii) of the Income Tax Regulations.

    3. In the case of each Taxpayer for which a timely, valid and continuing REMIC
    election has been made in accordance with the applicable Governing Agreement,
    the distribution of an Allocable Share amount in accordance with the applicable
    Governing Agreement and the Settlement Agreement will not cause any regular
    interest in such Taxpayer to fail to qualify as a “regular interest” as defined in
    Section 860G(a)(1) or the sole class of residual interest in such Taxpayer to fail
    to qualify as a “residual interest” as defined in Section 860G(a)(2).

    4. In the case of each Taxpayer for which a timely, valid and continuing REMIC
    election has been made in accordance with the applicable Governing Agreement,
    neither the receipt of an Allocable Share amount nor the reduction of
    unreimbursed Advances owed to the Master Servicer attributable to any Master
    Servicing Fee Adjustment (or, in the case of Taxpayer A and Taxpayer B, the
    receipt of any Master Servicing Fee Adjustment) will be treated as a “prohibited
    transaction” within the meaning of Section 860F(a)(2) or as a contribution that is
    subject to the tax imposed under Section 860G(d)(1).

Facts

Background

  Each Taxpayer has elected to be treated as a REMIC within the meaning of

Section 860D and is evidenced by separate Pooling and Servicing Agreements or
Indentures and related Sales and Servicing Agreements (each a “Governing
Agreement” and collectively, the “Governing Agreements”). Under the Governing
Agreements, Trustee serves as trustee or indenture trustee for each of the Taxpayers.
The law of State governs the rights and obligations of the parties to the Governing
PLR-113051-15 4

Agreements, including the Trustee. The annual accounting period for each Taxpayer is
the calendar year and each Taxpayer utilizes the accrual method of accounting for
maintaining its accounting books and filing its U.S. federal income tax return.

  Taxpayers function as residential mortgage loan securitization vehicles. The

Taxpayers were established during the period of Year 1 through Year 2 for the primary
purpose of raising money in the securitization market for pools of residential real estate
mortgage loans originated or acquired by Company A and its affiliates, the sponsor of
the mortgage securitizations. The aggregate principal balance of mortgage loans that
were securitized through the Taxpayers was approximately $A.

 Trustee is a wholly owned banking subsidiary of Company B, a public company

whose shares of common stock are traded on Exchange.

   The securitization process for each Taxpayer generally occurred as follows:

   (1) Company C and one or more of its affiliates, Company D, Company E,
   Company F, and Company G (collectively, the “Seller”), sold portfolios of
   residential mortgage loans (the “Mortgage Loans”) to a Company A entity (the
   “Depositor”).

   (2) For Taxpayers governed by Pooling and Servicing Agreements, the Depositor
   conveyed the Mortgage Loans to Trustee, as trustee, to be held in trust. For
   Taxpayers governed by Indentures and Sales and Servicing Agreements, the
   Depositor conveyed the Mortgage Loans to the Taxpayer, for the benefit of
   noteholders, and the Taxpayer granted Trustee, in its capacity as indenture
   trustee, all of Taxpayer’s right, title, and interest in the Mortgage Loans.

   (3) Several classes of certificates or notes representing various entitlements to
   the underlying mortgage pool’s cash flows then were issued and sold through an
   underwriter or underwriters to investors including, with respect to certain
   Taxpayers, interests in an upper-tier REMIC that held all of the regular interests
   in such Taxpayer, directly or through one or more intermediate REMICs (the
   holders of any such interests in a Taxpayer or in such an upper-tier REMIC
   holding all of the regular interests in a Taxpayer, the “Investors”).

   (4) Company C or Company H acted as “Master Servicer” for each of the
   Taxpayers and was charged with responsibility for, among other things, collecting
   debt service payments on the Mortgage Loans, taking any necessary
   enforcement action against borrowers, and remitting payments on a monthly
   basis to the Trustee for distribution to the Investors.

  In each securitization, an election was made to treat the Mortgage Loans held by

each Taxpayer and related assets as a REMIC under the Code.
PLR-113051-15 5

   The Governing Agreement for each Taxpayer contains a series of

representations and warranties made by the Seller for the benefit of the Taxpayer. In
general, these include representations that the Mortgage Loans were underwritten in all
material respects in accordance with certain underwriting guidelines, that the Mortgage
Loans conform in all material respects to their descriptions in the investor disclosure
documents, that the origination, underwriting and collection practices of the Seller and
Master Services have been legal, prudent and customary in the mortgage lending and
servicing business, and that the Mortgage Loans were originated in accordance with all
applicable laws.

  The Governing Agreements also impose servicing obligations on the Master

Servicer, requiring among other things, that the Master Servicer service and administer
the Mortgage Loans in accordance with the terms of the Governing Agreements and
customary and usual standards of prudent mortgage loan servicers.

The Dispute

    Beginning in Month 1 of Year 3 a dispute arose concerning the Sellers’ alleged

breaches of certain representations and warranties under the Governing Agreements
and the Master Servicer’s alleged violations of servicing obligations. The allegations
were first brought to the Trustee by a group made up of certain institutional Investors
(the “Institutional Investors”).

   The Institutional Investors asserted that Company I is liable for the obligations of

Company A. Company I and Company A have disagreed both as to the alleged
breaches and as to Company I’s alleged liability for Company A’s obligations.
Subsequent to the mortgage securitizations involving Taxpayers, Company A was
acquired by Company I and is currently a separate subsidiary of Company I.
Additionally, Company H merged with and into Company J, which currently acts as
Master Servicer for the Taxpayers.

   In a letter dated Month 1 of Year 3 to the Trustee, the Institutional Investors

asserted that a large number of Mortgage Loans which Company A had sold to the
Taxpayers failed to comply with certain representations and warranties Company A had
given in the Governing Agreements, and therefore, Company A was in breach under the
Governing Agreements. The assertion was based in part on (i) alleged excessive early
default and foreclosure rates for the Mortgage Loans, (ii) previous settlements reached
by Company A with the attorneys general of various states, and (iii) certain publicly
disclosed e-mails from Company A officials alleged to be evidence of breaches of
representations and warranties. The Institutional Investors believed that large numbers
of the Mortgage Loans were subject to repurchase pursuant to the Governing
Agreements as a result of these breaches.

   The representations and warranties of the Sellers that were alleged to have been

violated generally concerned whether the Mortgage Loans had been originated and
PLR-113051-15 6

underwritten in compliance with standards and guidelines described in the Governing
Agreements and whether the Mortgage Loans met the descriptions provided in the
Governing Agreements concerning loan-to-value ratios, title insurance, and appraisals.
The Governing Agreements provided that, upon discovery and notice of a breach of a
representation and warranty with respect to a Mortgage Loan that materially and
adversely affects the interests of the Investors, the Seller shall cure the breach within B
days or repurchase the affected Mortgage Loan for an amount equal to its “purchase
price,” which is an amount equal to the unpaid principal balance of the affected
Mortgage Loan plus accrued and unpaid interest thereon.

   On Date 1, the Institutional Investors asserted in a separate letter to the Trustee

and the Master Servicer a notice of non-performance pursuant to the Governing
Agreements that Company H, as Master Servicer, had also breached several provisions
of the Governing Agreements. The Institutional Investors alleged the Company H
violated the Governing Agreements by failing and refusing to notify the Trustee and
others of Company A’s breaches of representations and warranties and that Company
H failed to meet its obligations under the Governing Agreements to represent and
protect the interests of the REMICs in the same manner as it protects its own interest in
mortgage loans in its own portfolios. The notice of non-performance also asserted that
Company H breached the Governing Agreements by (i) failing to maintain accurate and
adequate loan and collateral files in a manner consistent with prudent mortgage
servicing standards, (ii) failing to demand that the Sellers cure deficiencies in mortgage
records, (iii) incurring avoidable and unnecessary servicing fees as a result of its
allegedly deficient record-keeping, and (iv) overcharging the costs for maintenance,
inspection and other services with regard to the defaulted Mortgage Loans.

   The Institutional Investors further stated in the notice of non-performance that

each of the alleged breaches described in the notice materially affected the Investors’
rights under the trusts and warned that a failure to cure would constitute an event of
default under the Governing Agreements.

   Beginning in Month 2 of Year 3, the Trustee, on behalf of the Taxpayers,

engaged in negotiations with the Institutional Investors, Company A, and Company I in
an attempt to reach a settlement relating to the alleged breaches of the Governing
Agreements. The negotiations resulted in a settlement (the “Settlement”) memorialized
in a Settlement Agreement (the “Settlement Agreement”) between the Trustee,
Company A, Company C, Company H, and Company I. In a separate agreement
entered into with the Trustee, Company A, and Company I, the Institutional Investors
committed to support the Settlement.

  The Settlement was conditioned upon final court approval. To that end, the

Trustee, on behalf of the Taxpayers, commenced in Court 1 on Date 2, a proceeding
seeking judicial instructions and approval of the Settlement. After an evidentiary
hearing and decision by Court 1, the decision was appealed to Court 2. On Date 3,
PLR-113051-15 7

Court 2 modified the decision of Court 1 and approved the Settlement and Settlement
Agreement in all respects, thus, rendering final court approval of the Settlement.

The Settlement Agreement

   The Settlement Agreement has two primary components. One, a $C settlement

payment payable by Company A and/or Company I to be allocated among the
Taxpayers (the “Settlement Payment”) and, two, servicing and document improvements
to be implemented with respect to each Taxpayer.

   The Settlement Payment will be allocated among the Taxpayers in accordance

with an allocation formula that accounts for past and expected future losses associated
with the Mortgage Loans held by each Taxpayer. An independent financial advisor (the
“Expert”) retained by the Trustee will perform any calculations required in connection
with the allocation formula, and those allocation calculations will be treated as final and
accepted by the parties, absent bad faith or manifest error.

    The Settlement Payment allocations are determined by reference to the amount

of “net losses” incurred by each Taxpayer. The Expert will calculate the amount of net
losses for each Taxpayer that have been or are estimated to be borne by that Taxpayer
from its inception date to its expected termination. That amount will be expressed as a
percentage of the sum of the net losses that are estimated to be borne by all Taxpayers
from their inception dates to their expected dates of termination (the “Net Loss
Percentage”). The Expert will calculate each Taxpayer’s allocable share of the
Settlement Payment by multiplying the amount of the Settlement Payment by the Net
Loss Percentage for each Taxpayer (the “Allocable Share”). If applicable, the Expert
will calculate the portion of the Allocable Share that relates to principal-only certificates
or notes, and the portion of the Allocable Share that relates to all other certificates or
notes.

    Upon completion of the Expert’s calculation of each Taxpayer’s Allocable Share

and at the direction of the Trustee, Company I will wire each Taxpayer’s Allocable
Share into the related Taxpayer’s collection account or certificate account for
distribution to Investors.

    Taxpayers represent that the distribution provisions of the Settlement Agreement

do not alter the rights or obligations of any of the Taxpayers or the Investors’ interests
therein and that the distribution of Allocable Shares to Investors is consistent with the
distribution provisions contained in the Governing Agreements. More specifically, the
Trustee will distribute the Allocable Shares to Investors as though it were a “subsequent
recovery” as defined in the applicable Governing Agreements. A subsequent recovery
is defined as an unexpected amount that a REMIC trust might receive from time to time
with respect to a Mortgage Loan for which the Master Servicer has previously
determined that all liquidation proceeds that it expects to recover on the Mortgage Loan
or the related mortgaged property have been received and, consequently, a realized
PLR-113051-15 8

loss typically has been taken and applied under the applicable Governing Agreement to
reduce the outstanding principal balance(s) of the outstanding REMIC regular interest
certificates, in inverse order of seniority. Subsequent recoveries are made as returns of
principal only on the then-outstanding principal balances of the relevant Investors’
interest.

    For Taxpayers with Governing Agreements that do not contain a defined

“subsequent recovery” term, the Allocable Share will be distributed to the related
Investors in accordance with the distribution provisions of the applicable Governing
Agreement as though it was an unscheduled payment of principal available for
distribution on that distribution date.

    The Settlement Agreement also provides that if, as a result of the distribution of

an Allocable Share to Investors by a particular Taxpayer, a principal payment would
become payable to a class of REMIC residual interests, such payment (other than a
final distribution date of the REMIC) shall be maintained in the distribution account and
the Trustee shall distribute it to Investors on the next distribution date as though it was a
subsequent recovery or unscheduled payment of principal available for distribution on
that date.

   For the servicing component of the Settlement Agreement, the Master Servicer

has agreed to implement various servicing improvements and remedies. The
improvements are intended to provide for servicing performance by Company J, as
Master Servicer, with respect to the Mortgage Loans that have not been transferred to
subservicing at or above industry standards specified in the Settlement Agreement and
a mechanism for Company J to transfer high risk loans to subservicers for more
individualized attention.

    For all loans not in subservicing, Company J has agreed to (i) benchmark its

servicing performance on a monthly basis against specific industry standards set forth in
the Settlement Agreement , (ii) send to the Trustee on a monthly basis statistics
comparing Company J’s performance to such industry standards, and (iii) calculate and
include in its monthly statement a master servicing fee payment (“Master Servicing Fee
Adjustment”) payable by it to a Taxpayer if Company J’s aggregate performance with
regard to such Taxpayer fails to meet such industry standards, which payment would be
satisfied by reducing unreimbursed advances due to Company J, as Master Servicer.
For Taxpayer A and Taxpayer B, no unreimbursed advances have been made and no
advance liens exist and, as a result, the Settlement Agreement provides that the Master
Servicing Fee Adjustment is to be wired to the Trustee by the Master Servicer and
distributed in the same manner as an Allocable Share.

Law and Analysis

Issue #1 and #2: Qualified Mortgages, Permitted Investments, and Payments Received
on Qualified Mortgages
PLR-113051-15 9

   Section 860D(a) provides that the terms “real estate mortgage investment

conduit” and “REMIC” mean any entity that meets several requirements including that
as of the close of the third month beginning after the startup day and at all times
thereafter, substantially all of the assets of the entity consist of qualified mortgages and
permitted investments.

    Section 860G(a)(3)(A) defines qualified mortgage to include any obligation

(including any participation or certificate of beneficial ownership therein) which is
principally secured by an interest in real property and which (i) is transferred to the
REMIC on the startup day in exchange for regular or residual interests in the REMIC,(ii)
is purchased by the REMIC within the 3-month period beginning on the startup day if,
except as provided in regulations, such purchase is pursuant to a fixed-price contract in
effect on the startup day, or (iii) represents an increase in the principal amount under
the original terms of an obligation described in clause (i) or (ii) if such increase—(I) is
attributable to an advance made to the obligor pursuant to the original terms of a
reverse mortgage loan or other obligation, (II) occurs after the startup day, and (III) is
purchased by the REMIC pursuant to a fixed price contract in effect on the startup day.

   Section 860G(a)(5) defines “permitted investments” to mean any cash flow

investment, qualified reserve asset, or foreclosure property. Section 860G(a)(6) defines
“cash flow investment” to mean any investment of amounts received under qualified
mortgages for a temporary period before distribution to holders of interests in the
REMIC.

    Section 1.860D-1(b)(3)(i) provides that for purposes of the asset test of section

860D(a)(4), substantially all of a qualified entity’s assets are qualified mortgages and
permitted investments if the qualified entity owns no more than a de minimis amount of
other assets. Section 1.860D-1(b)(3)(ii) provides that the amount of assets other than
qualified mortgages and permitted investments is de minimis if the aggregate of the
adjusted bases of those assets is less than one percent of the aggregate of the adjusted
bases of all of the REMIC’s assets.

   Section 1.860G-2(g)(1)(ii) states that, in determining what is a cash flow

investment, the term "payments received on qualified mortgages" includes, among other
payments, payments by a sponsor or prior owner in lieu of the sponsor's or prior
owner's repurchase of a defective obligation, as defined in Section 1.860G-2(g)(1)(ii)(f),
that was transferred to the REMIC in breach of a customary warranty.

   Section 1.860G-2(f)(1) defines a defective obligation as a mortgage subject to

certain defects including that the mortgage does not conform to a customary
representation or warranty given by the sponsor or prior owner of the mortgage
regarding the characteristics of the mortgage, or the characteristics of the pool of
mortgages of which the mortgage is a part.
PLR-113051-15 10

   Each Taxpayer’s right to receive its Allocable Share under the Settlement

Agreement arises from the Mortgage Loans. The Allocable Share for each Taxpayer is
a contract claim that stems directly from the rights held by the Trustee on behalf of each
Taxpayer and its status as a REMIC. Therefore, a Taxpayer’s right to receive an
Allocable Share does not constitute an asset that is newly acquired by a REMIC after its
startup date. The execution of the Settlement Agreement, the methodology used to
determine a Taxpayer’s Allocable Share, the receipt of the Allocable Share by a
Taxpayer, and the Master Servicing Fee Adjustment arise from each Taxpayer’s interest
in the Mortgage Loans and its status as a REMIC, and, therefore, will not cause any
Taxpayer to fail to meet the requirements under Section 860D(a)(4).

   The Allocable Share under Settlement Agreement is the result of a dispute

between Institutional Investors and the Trustee with Company A and Company I
regarding whether the Mortgage Loans conveyed to each Taxpayer violated customary
representations and warranties under the respective Governing Agreements. For
purposes of the REMIC rules, a defective obligation includes mortgages that do not
conform to a customary representation or warranty given by the sponsor or prior owner
of the mortgage regarding the characteristics of the mortgage, or the characteristics of
the pool of mortgages of which the mortgage is a part. Each Taxpayer’s right to the
Allocable Share under the Settlement Agreement is akin to a payment received by such
Taxpayer from a sponsor or prior owner in lieu of the sponsor or prior owner’s
repurchase of such a defective obligation. Therefore, pursuant to Section 1.860G-
2(g)(1)(ii), the Allocable Share will be considered a payment received on a qualified
mortgage pursuant to Section 1.860G-2(g)(1)(ii).

Issue #3: Regular and Residual Interests

   Section 860G(a)(1) defines a “regular interest” in a REMIC to mean any interest

in a REMIC which is issued on the startup day with fixed terms and which is designated
as a regular interest if (A) such interest unconditionally entitles the holder to receive a
specified principal amount (or other similar amount), and (B) interest payments (or other
similar amount), if any, with respect to such interest at or before maturity (i) are payable
based on a fixed rate (or to the extent provided in regulations, at a variable rate), or (ii)
consist of a specified portion of the interest payments on qualified mortgages and such
portion does not vary during the period such interest is outstanding.

   Section 860G(a)(2) defines a “residual interest” in a REMIC to mean an interest

in a REMIC which is issued on the startup day, which is not a regular interest, and
which is designated as a residual interest.

 Section 860G(a)(9) defines the term “startup day” to mean the day on which the

REMIC issues all of its regular and residual interests.

 Section 1.860G-1(a)(1) provides that, for purposes of Section 860G(a)(1), a

REMIC designates an interest as a regular interest by providing to the Internal Revenue
PLR-113051-15 11

Service the information specified in Section 1.860D-1(d)(2)(ii) in the time and manner
specified in Section 1.860D-1(d)(2). Section 1.860G-1(c) provides that a residual
interest is an interest in a REMIC that is issued on the startup day and that is
designated as a residual interest by providing the information specified in § 1.860D-
1(d)(2)(ii) at the time and in the manner provided in Section 1.860D-1(d)(2). A residual
interest need not entitle the holder to any distributions from the REMIC.

   Section 1.860G-1(a)(4) provides that, for purposes of Section 860G(a)(1), a

regular interest in a REMIC has fixed terms on the startup day if, on the startup day, the
REMIC's organizational documents irrevocably specify (i) the principal amount (or other
similar amount) of the regular interest, (ii) the interest rate or rates used to compute any
interest payments (or other similar amounts) on the regular interest, and (iii) the latest
possible maturity date of the interest.

   A REMIC regular interest must be issued on the startup date with fixed terms. A

REMIC residual interest is an interest in the REMIC issued on the startup date that is
not a regular interest. Taxpayers represent that the distribution provisions of the
Settlement Agreement do not alter the rights or obligations of any of the Taxpayers or
the Investors’ interests therein and that the distribution of Allocable Shares to Investors
is consistent with the distribution provisions contained in the Governing Agreements.
The Allocable Shares will be distributed by the Taxpayers to the regular interest holders
under the applicable Governing Agreements in accordance with the distribution
provisions as either a subsequent recovery or as though it was an unscheduled
payment of principal available for distribution on that date. The Settlement Agreement
also provides that should a principal payment become payable to a class of REMIC
residual interests, such payment will be maintained in the distribution account and the
Trustee shall distribute it to Investors on the next distribution date as though it was a
subsequent recovery or unscheduled payment of principal available for distribution on
that date. Accordingly, the distribution of an Allocable Share to Investors will not cause
any regular interest in a Taxpayer to fail to qualify as a regular interest or the sole class
of residual interest in the Taxpayer to fail to qualify as a residual interest.

Issue #4: Tax on Contributions after Startup Date and Prohibited Transaction

   Except as provided in Section 860G(d)(2), Section 860G(d)(1) imposes on any

amount that is contributed to a REMIC after the startup day a tax on 100 percent of the
amount contributed. Section 860G(d)(2) provides that the tax on contributions after the
startup date shall not apply to any contribution which is made in cash and is either (A)
any contribution to facilitate a cleanup call (as defined in regulations) or a qualified
liquidation,(B) any payment in the nature of a guarantee, (C) any contribution during the
3-month period beginning on the startup day, (D) any contribution to a qualified reserve
fund by any holder of a residual interest in the REMIC, or (E) any other contribution
permitted in regulations.
PLR-113051-15 12

    Section 860F(a)(1) imposes a tax equal to 100 percent of the net income derived

from prohibited transactions. Section 860F(a)(2) defines prohibited transaction to mean
one of the following: (A) disposition of any qualified mortgage transferred to the REMIC
other than a disposition pursuant to (i) the substitution of a qualified replacement
mortgage for a qualified mortgage (or the repurchase in lieu of substitution of a
defective obligation), (ii) a disposition incident to the foreclosure, default, or imminent
default of the mortgage, (iii) the bankruptcy or insolvency of the REMIC, or (iv) a
qualified liquidation, (B) the receipt of any income attributable to any asset which is
neither a qualified mortgage nor a permitted investment, (C) the receipt by the REMIC
of any amount representing a fee or other compensation for services, or (D) gain from
the disposition of any cash flow investment other than pursuant to any qualified
liquidation.

   Section 1.860D-1(b)(2)(i) provides that the right to receive from the REMIC

payments that represent reasonable compensation for services provided to the REMIC
in the ordinary course of its operation is not an interest in the REMIC. Payments made
by the REMIC in exchange for services may be expressed as a specified percentage of
interest payments due on qualified mortgages or as a specified percentage of earnings
from permitted investments. For example, a mortgage servicer’s right to receive
reasonable compensation for servicing the mortgages owned by the REMIC is not an
interest in the REMIC.

     As discussed above, the receipt of the Allocable Share by a Taxpayer, and the

Master Servicing Fee Adjustment arise from the Mortgage Loans and each Taxpayer’s
status as a REMIC. The Allocable Share arises in connection with each Taxpayer’s
interest in the Mortgage Loans and is neither a contribution of cash to the REMIC nor is
it listed as a prohibited transaction in Section 860F(a)(2). The Master Servicing Fee
Adjustment is similarly not a contribution of cash to the relevant Taxpayer, but is an
amount reimbursed (or, in the case of Taxpayer A and Taxpayer B, an amount
received) in connection with compensation for services provided to the Taxpayer in the
ordinary course of the Taxpayer’s operation. No Taxpayer is performing any services in
connection with the Master Servicing Fee Adjustment. As a result, neither the receipt of
the Allocable Share by a Taxpayer nor the Master Servicing Fee Adjustment will be
treated as a prohibited transaction within the meaning of Section 860F(a)(2) or as a
contribution subject to tax under Section 860G(d)(1).

Conclusion

   We hereby rule as follows:

   1. In the case of each Taxpayer for which a timely, valid and continuing REMIC
   election has been made in accordance with the applicable Governing Agreement,
   none of (i) the execution of the Settlement Agreement, (ii) the methodology for
   determining, and the right to receive, an Allocable Share of the Settlement
   Payment, (iii) the receipt of an Allocable Share of the Settlement Payment, or (iv)

PLR-113051-15 13

   the reduction of unreimbursed advances owed to the Master Servicer attributable
   to any Master Servicing Fee Adjustment (or, in the case of Taxpayer A and
   Taxpayer B, the receipt of any Master Servicing Fee Adjustment) will cause the
   Taxpayer to fail to meet the requirements of Section 860D(a)(4).

   2. In the case of each Taxpayer for which a timely, valid and continuing REMIC
   election has been made in accordance with the applicable Governing Agreement,
   the receipt of an Allocable Share of the Settlement Payment will be treated as a
   payment received on qualified mortgages within the meaning of Section 1.860G-
   2(g)(1)(ii).

   3. In the case of each Taxpayer for which a timely, valid and continuing REMIC
   election has been made in accordance with the applicable Governing Agreement,
   the distribution of an Allocable Share amount in accordance with the applicable
   Governing Agreement and the Settlement Agreement will not cause any regular
   interest in such Taxpayer to fail to qualify as a “regular interest” as defined in
   Section 860G(a)(1) or the sole class of residual interest in such Taxpayer to fail
   to qualify as a “residual interest” as defined in Section 860G(a)(2).

   4. In the case of each Taxpayer for which a timely, valid and continuing REMIC
   election has been made in accordance with the applicable Governing Agreement,
   neither the receipt of an Allocable Share amount nor the reduction of
   unreimbursed advances owed to the Master Servicer attributable to any Master
   Servicing Fee Adjustment (or, in the case of Taxpayer A and Taxpayer B, the
   receipt of any Master Servicing Fee Adjustment) will be treated as a “prohibited
   transaction” within the meaning of Section 860F(a)(2) or as a contribution that is
   subject to the tax imposed under Section 860G(d)(1).

  This ruling's application is limited to the facts, representations, Code sections,

and regulations cited herein. Except as specifically ruled upon above, no opinion is
expressed concerning any federal income tax consequences related to the facts herein
under any other provisions of the Code. Specifically, we do not rule whether any
Taxpayer qualifies as a REMIC under Sections 860A-860G or whether any Mortgage
Loan qualifies as a qualified mortgage as defined in Section 860G(a)(3).

   This ruling is directed only to the taxpayers that requested it. Section 6110(k)(3)

provides that it may not be used or cited as precedent. In accordance with the
provisions of a Power of Attorney on file, we are sending a copy of this ruling letter to
your authorized representatives.

  The rulings contained in this letter are based upon information and

representations submitted by the taxpayer and accompanied by a penalty of perjury
statement executed by an appropriate party. While this office has not verified any of the
material submitted in support of the request for rulings, it is subject to verification on
examination.
PLR-113051-15 14

                                             Sincerely,



                                             Julanne Allen
                                             Assistant to the Branch Chief, Branch 3
                                             Office of Associate Chief Counsel
                                             (Financial Institutions & Products)

cc:

  ------------------------
  ------------------------
  -------------------------------
  ----------------------------

  ----------------------
  ----------------------------------
  ----------------------------------------
  -------------------------
  ----------------------------------
   ----------------------------------

PLR-113051-15 15

                                                      Appendix A

REMIC Name ------------------------------------------------------------------ ----------------------------------------------------------------- ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ ----------------------------------------------------------------------------- ------------------------------------------------------------------------------- ----------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- ------------------------------------------------------------------------ ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- --------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------------------------- --------------------------------------------------------------------------- --------------------------------------------------------------------------- --------------------------------------------------------------------------- ---------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------- -------------------------------------------------------------- -------------------------------------------------------------------------- -------------------------------------------------------------------------- PLR-113051-15 16 EIN Control Number
------------------- PLR-120201-15
------------------- PLR-102203-15
------------------- PLR-120178-15
------------------- PLR-120179-15
------------------- PLR-120180-15
------------------- PLR-120187-15
------------------- PLR-120190-15
------------------- PLR-120191-15
------------------- PLR-120194-15
------------------- PLR-120182-15
------------------- PLR-120211-15
------------------- PLR-120159-15
------------------- PLR-120166-15
------------------- PLR-120168-15
------------------- PLR-120172-15
------------------- PLR-120173-15
------------------- PLR-120174-15
------------------- PLR-120184-15
------------------- PLR-120164-15
------------------- PLR-120165-15
------------------- PLR-120167-15
------------------- PLR-120169-15
------------------- PLR-120170-15
------------------- PLR-120171-15
------------------- PLR-120174-15
------------------- PLR-120177-15
------------------- PLR-120186-15
------------------- PLR-120209-15
------------------- PLR-120455-15
------------------- PLR-120469-15
------------------- PLR-120470-15
------------------- PLR-120471-15
------------------- PLR-120472-15

-------------------------------------------------------------------------- ------------------- PLR-120473-15
-------------------------------------------------------------------------- ------------------- PLR-120474-15
-------------------------------------------------------------------------- ------------------- PLR-120475-15
----------------------------------------------------------------------- ------------------- PLR-120505-15
-------------------------------------------------------------------------- ------------------- PLR-120512-15
-------------------------------------------------------------------- ------------------- PLR-120456-15
-------------------------------------------------------------------- ------------------- PLR-120457-15
-------------------------------------------------------------------- ------------------- PLR-120458-15
-------------------------------------------------------------------- ------------------- PLR-120460-15
------------------------------------------------------------------------ ------------------- PLR-120511-15
------------------------------------------------------- ------------------- PLR-120528-15
------------------------------------------------------------ ------------------- PLR-120539-15
------------------------------------------------------------ ------------------- PLR-120540-15
---------------------------------------------------------- ------------------- PLR-120542-15
---------------------------------------------------------- ------------------- PLR-120543-15
----------------------------------------------------------- ------------------- PLR-120566-15
------------------------------------------------------------ ------------------- PLR-120571-15
---------------------------------------------------------------------- ------------------- PLR-120584-15
-------------------------------------------------------------------- ------------------- PLR-120587-15
------------------------------------------------------------------- ------------------- PLR-120589-15
---------------------------------------------------------------------------- ------------------- PLR-120628-15
------------------------------------------ ------------------- PLR-120518-15
--------------------------------------------------------- ------------------- PLR-120519-15
---------------------------------------- ------------------- PLR-120521-15
-------------------------------------------------------- ------------------- PLR-120522-15
--------------------------------------------------------- ------------------- PLR-120523-15
------------------------------------------ ------------------- PLR-120524-15
---------------------------------------- ------------------- PLR-120529-15
---------------------------------------- ------------------- PLR-120530-15
---------------------------------------- ------------------- PLR-120531-15
---------------------------------------- ------------------- PLR-120532-15
-------------------------------------------- ------------------- PLR-120533-15
-------------------------------------------- ------------------- PLR-120534-15
------------------------------------------- ------------------- PLR-120536-15
-------------------------------------------- ------------------- PLR-120537-15
-------------------------------------------- ------------------- PLR-120538-15
PLR-113051-15 17

-------------------------------------------------------- ------------------- PLR-120541-15
-------------------------------------------- ------------------- PLR-120544-15
---------------------------------------- ------------------- PLR-120545-15
------------------------------------------ ------------------- PLR-120546-15
------------------------------------------ ------------------- PLR-120547-15
------------------------------------------ ------------------- PLR-120548-15
----------------------------------------------------------------------------- ------------------- PLR-120549-15
------------------------------------------ ------------------- PLR-120551-15
----------------------------------------------------------------------------- ------------------- PLR-120552-15
-------------------------------------------------------------------------- ------------------- PLR-120553-15
---------------------------------------- ------------------- PLR-120554-15
---------------------------------------- ------------------- PLR-120555-15
---------------------------------------- ------------------- PLR-120556-15
---------------------------------------- ------------------- PLR-120557-15
---------------------------------------- ------------------- PLR-120558-15
---------------------------------------- ------------------- PLR-128559-15
---------------------------------------- ------------------- PLR-120560-15
---------------------------------------- ------------------- PLR-120561-15
-------------------------------------------- ------------------- PLR-120562-15
-------------------------------------------- ------------------- PLR-120563-15
-------------------------------------------- ------------------- PLR-120564-15
-------------------------------------------- ------------------- PLR-120565-15
-------------------------------------------- ------------------- PLR-120567-15
-------------------------------------------- ------------------- PLR-120568-15
-------------------------------------------- ------------------- PLR-120569-15
------------------------------------------ ------------------- PLR-120570-15
------------------------------------------ ------------------- PLR-120573-15
------------------------------------------ ------------------- PLR-120574-15
------------------------------------------ ------------------- PLR-120575-15
------------------------------------------- ------------------- PLR-120576-15
------------------------------------------- ------------------- PLR-120577-15
------------------------------------------- ------------------- PLR-120578-15
--------------------------------------------------------------------------- ------------------- PLR-120579-15
--
------------------------------------------------------- ------------------- PLR-120580-15
------------------------------------------------------- ------------------- PLR-120581-15
------------------------------------------------------- ------------------- PLR-120583-15
PLR-113051-15 18

--------------------------------------------------------- ------------------- PLR-120585-15
---------------------------------------- ------------------- PLR-120590-15
---------------------------------------- ------------------- PLR-120599-15
---------------------------------------- ------------------- PLR-120600-15
---------------------------------------- ------------------- PLR-120601-15
---------------------------------------- ------------------- PLR-120602-15
---------------------------------------------------- ------------------- PLR-120603-15
---------------------------------------------------- ------------------- PLR-120604-15
---------------------------------------------------- ------------------- PLR-120605-15
----------------------------------------------------------- ------------------- PLR-120606-15
------------------------------------------ ------------------- PLR-120607-15
------------------------------------------ ------------------- PLR-120608-15
-------------------------------------------- ------------------- PLR-120609-15
-------------------------------------------- ------------------- PLR-120610-15
------------------------------------------ ------------------- PLR-120612-15
------------------------------------------- ------------------- PLR-120614-15
--------------------------------------------- ------------------- PLR-120615-15
---------------------------------------------- ------------------- PLR-120041-15
------------------------------------------- ------------------- PLR-120616-15
------------------------------------------- ------------------- PLR-120617-15
----------------------------------------------------------------- ------------------- PLR-120618-15
----------------------------------------------------------------- ------------------- PLR-120619-15
----------------------------------------------------- ------------------- PLR-120623-15
------------------------------------------------------ ------------------- PLR-120624-15
---------------------------------------------------- ------------------- PLR-120630-15
---------------------------------------------------- ------------------- PLR-120634-15
-------------------------------------------- ------------------- PLR-120635-15
-------------------------------------------- ------------------- PLR-120636-15
-------------------------------------------- ------------------- PLR-120637-15
-------------------------------------------- ------------------- PLR-120638-15
------------------------------------------------ ------------------- PLR-120639-15
------------------------------------------------ ------------------- PLR-120639-15
------------------------------------------------ ------------------- PLR-120640-15
--------------------------------------------------- ------------------- PLR-120517-15
--------------------------------------------------- ------------------- PLR-120525-15
--------------------------------------------------- ------------------- PLR-120526-15
PLR-113051-15 19

--------------------------------------------------- ------------------- PLR-120527-15
------------------------------------------------------- ------------------- PLR-120535-15
----------------------------------------------------- ------------------- PLR-120550-15
------------------------------------------------------------------ ------------------- PLR-120582-15
------------------------------------------------------------------ ------------------- PLR-120586-15
------------------------------------------------------------------ ------------------- PLR-120588-15
------------------------------------------------------------------ ------------------- PLR-120591-15
------------------------------------------------------------------ ------------------- PLR-120592-15
---------------------------------------------------------------- ------------------- PLR-120593-15
------------------------------------------------------------------ ------------------- PLR-120594-15
------------------------------------------------------------------ ------------------- PLR-120596-15
------------------------------------------------------------------ ------------------- PLR-120597-15
------------------------------------------------------------------ ------------------- PLR-120598-15
------------------------------------------------------------------ ------------------- PLR-120611-15
-------------------------------------------------------- ------------------- PLR-120613-15
------------------------------------------------------------------ ------------------- PLR-120620-15
------------------------------------------------------------------ ------------------- PLR-120626-15
------------------------------------------------------------------ ------------------- PLR-120627-15
------------------------------------------------------------------ ------------------- PLR-120629-15
------------------------------------------------------------------ ------------------- PLR-120631-15
------------------------------------------------------------------ ------------------- PLR-120632-15
------------------------------------------------------------------ ------------------- PLR-120621-15
------------------------------------------------------------------ ------------------- PLR-120622-15
------------------------------------------ ------------------- PLR-119983-15
---------------------------------------------------------- ------------------- PLR-119955-15
------------------------------------------------------------ ------------------- PLR-119957-15
---------------------------------------------- ------------------- PLR-119959-15
-------------------------------------------------------- ------------------- PLR-119960-15
------------------------------------------------------------- ------------------- PLR-119963-15
---------------------------------------------------------- ------------------- PLR-119965-15
---------------------------------------------------------- ------------------- PLR-119971-15
---------------------------------------------------------- ------------------- PLR-119972-15
---------------------------------------- ------------------- PLR-119978-15
---------------------------------------- ------------------- PLR-119980-15
-------------------------------------------------------- ------------------- PLR-119995-15
------------------------------------------------------------ ------------------- PLR-119985-15
PLR-113051-15 20

------------------------------------------------------- ------------------- PLR-119988-15
------------------------------------------------------- ------------------- PLR-119990-15
----------------------------------------------------------- ------------------- PLR-120042-15
---------------------------------------------------------------- ------------------- PLR-120043-15
------------------------------------------------------------- ------------------- PLR-120046-15
-------------------------------------------------------- ------------------- PLR-120047-15
---------------------------------------------------------------- ------------------- PLR-120050-15
---------------------------------------------------------------- ------------------- PLR-120052-15
------------------------------------------------------------- ------------------- PLR-120054-15
---------------------------------------------------------------- ------------------- PLR-120060-15
---------------------------------------------------------- ------------------- PLR-120063-15
---------------------------------------------------------------- ------------------- PLR-120075-15
------------------------------------------------------------------------------ ------------------- PLR-120086-15
------------------------------------------------------------- ------------------- PLR-120088-15
------------------------------------------------------- ------------------- PLR-120089-15
------------------------------------------------------------------------------- ------------------- PLR-120185-15
------------------------------------------------------- ------------------- PLR-120090-15
------------------------------------------------------------------------------- ------------------- PLR-120478-15
---------------------------------------------- ------------------- PLR-120104-15
------------------------------------------------------------- ------------------- PLR-120115-15
---------------------------------------------------------------- ------------------- PLR-120134-15
------------------------------------------ ------------------- PLR-120141-15
-------------------------------------------------- ------------------- PLR-120144-15
---------------------------------------------------------- ------------------- PLR-120145-15
---------------------------------------- ------------------- PLR-120148-15
------------------------------------------------------------- ------------------- PLR-120155-15
---------------------------------------------------------------- ------------------- PLR-120158-15
-------------------------------------------------------------- ------------------- PLR-120176-15
------------------------------------------------------------- ------------------- PLR-120192-15
------------------------------------------------------ ------------------- PLR-120195-15
------------------------------------------------------ ------------------- PLR-120198-15
----------------------------------------------------------------- ------------------- PLR-120202-15
-------------------------------------------------------------------------------------- ------------------- PLR-120204-15
--------------------------------------------------- ------------------- PLR-120206-15
-------------------------------------------------------- ------------------- PLR-120207-15
--------------------------------------------------- ------------------- PLR-120208-15
PLR-113051-15 21

--------------------------------------------------- ------------------- PLR-120210-15
--------------------------------------------- ------------------- PLR-120215-15
-------------------------------------------------------------------------- ------------------- PLR-120217-15
------------------------------------------- ------------------- PLR-120228-15
------------------------------------------- ------------------- PLR-120229-15
-------------------------------------------- ------------------- PLR-120231-15
---------------------------------------------------------- ------------------- PLR-120232-15
---------------------------------------------------------- ------------------- PLR-120236-15
------------------------------------------------------- ------------------- PLR-120327-15
------------------------------------------------------- ------------------- PLR-120335-15
------------------------------------------------------ ------------------- PLR-120340-15
----------------------------------------------------------- ------------------- PLR-120345-15
---------------------------------------------------------- ------------------- PLR-120347-15
------------------------------------------- ------------------- PLR-120355-15
-------------------------------------------------------- ------------------- PLR-120365-15
---------------------------------------------------------------------------- ------------------- PLR-120188-15
------------------------------------------------------------------------------ ------------------- PLR-120193-15
------------------------------------------------------------------------------ ------------------- PLR-119993-15
-------------------------------------------------------------------------------- ------------------- PLR-120240-15
------------------------------------------------------------------------------ ------------------- PLR-120321-15
--------------------------------------------------------------------------- ------------------- PLR-120322-15
----------------------------------------------------------------------------- ------------------- PLR-120323-15
---------------------------------------------------------------------------------- ------------------- PLR-120324-15
---------------------------------------------------------------------------- ------------------- PLR-120325-15
---------------------------------------------------------------------------- ------------------- PLR-120326-15
------------------------------------------------------------------------- ------------------- PLR-120328-15
---------------------------------------------------------------------------- ------------------- PLR-120330-15
---------------------------------------------------------------------------- ------------------- PLR-120333-15
------------------------------------------------------------------------------ ------------------- PLR-120334-15
-------------------------------------------------------------------------------- ------------------- PLR-120338-15
------------------------------------------------------------------------- ------------------- PLR-120341-15
--------------------------------------------------------------------------------- ------------------- PLR-120247-15
-------------------------------------------------------------------------------- ------------------- PLR-120342-15
-------------------------------------------------------------------- ------------------- PLR-119936-15
-------------------------------------------------------------- ------------------- PLR-119937-15
-------------------------------------------------------------- ------------------- PLR-119939-15
PLR-113051-15 22

--------------------------------------------------------------- ------------------- PLR-119940-15
-------------------------------------------------------------------- ------------------- PLR-119941-15
-------------------------------------------------------------------- ------------------- PLR-119942-15
------------------------------------------------------------------- ------------------- PLR-119944-15
------------------------------------------------ ------------------- PLR-119945-15
-------------------------------------------------------------------- ------------------- PLR-119946-15
-------------------------------------------------------------------- ------------------- PLR-119947-15
-------------------------------------------------------------- ------------------- PLR-119948-15
------------------------------------------------------------- ------------------- PLR-119950-15
-------------------------------------------------------------------- ------------------- PLR-119951-15
------------------------------------------------------------------- ------------------- PLR-119953-15
------------------------------------------------------------------- ------------------- PLR-119954-15
------------------------------------------------------------- ------------------- PLR-119961-15
------------------------------------------------------------------- ------------------- PLR-119962-15
------------------------------------------------------------ ------------------- PLR-119964-15
------------------------------------------------------------ ------------------- PLR-119966-15
---------------------------------------------- ------------------- PLR-119968-15
----------------------------------------------------------------- ------------------- PLR-119970-15
----------------------------------------------------------------- ------------------- PLR-119973-15
------------------------------------------------- ------------------- PLR-119974-15
------------------------------------------------------- ------------------- PLR-119975-15
--------------------------------------------------------------- ------------------- PLR-119976-15
--------------------------------------------------------------- ------------------- PLR-119979-15
------------------------------------------------------- ------------------- PLR-119982-15
-------------------------------------------------------------------- ------------------- PLR-119986-15
------------------------------------------------------------------ ------------------- PLR-119987-15
-------------------------------------------------------------------- ------------------- PLR-119991-15
-------------------------------------------------------------- ------------------- PLR-119997-15
---------------------------------------------------------------------- ------------------- PLR-119998-15
-------------------------------------------------------------------- ------------------- PLR-120049-15
-------------------------------------------------------------- ------------------- PLR-120055-15
---------------------------------------------------------------- ------------------- PLR-120056-15
------------------------------------------------------------ ------------------- PLR-120064-15
-------------------------------------------------------------- ------------------- PLR-120066-15
-------------------------------------------------------------- ------------------- PLR-120067-15
-------------------------------------------------------------------- ------------------- PLR-120068-15
PLR-113051-15 23

---------------------------------------------------------- ------------------- PLR-120070-15
-------------------------------------------------------------------- ------------------- PLR-120073-15
-------------------------------------------------------------------- ------------------- PLR-120074-15
-------------------------------------------------------------- ------------------- PLR-120080-15
-------------------------------------------------------------- ------------------- PLR-120081-15
---------------------------------------------------- ------------------- PLR-120084-15
-------------------------------------------------------------------- ------------------- PLR-120085-15
------------------------------------------------------------------- ------------------- PLR-120091-15
------------------------------------------------------------------ ------------------- PLR-120094-15
------------------------------------------------------------------ ------------------- PLR-120095-15
-------------------------------------------------------------- ------------------- PLR-120098-15
------------------------------------------------------------------ ------------------- PLR-120100-15
----------------------------------------------------------------------- ------------------- PLR-120102-15
--------------------------------------------------------- ------------------- PLR-120103-15
-------------------------------------------------------------------- ------------------- PLR-120109-15
------------------------------------------------------------- ------------------- PLR-120114-15
-------------------------------------------------------------------- ------------------- PLR-120118-15
---------------------------------------------------------------------------- ------------------- PLR-120119-15
---------------------------------------------------------------------------- ------------------- PLR-120128-15
-------------------------------------------------------------- ------------------- PLR-120129-15
----------------------------------------------------------------- ------------------- PLR-120137-15
------------------------------------------------ ------------------- PLR-120139-15
-------------------------------------------------------------- ------------------- PLR-120140-15
------------------------------------------------ ------------------- PLR-120142-15
-------------------------------------------------------------- ------------------- PLR-120146-15
-------------------------------------------------------------- ------------------- PLR-120151-15
---------------------------------------------- ------------------- PLR-120152-15
---------------------------------------------- ------------------- PLR-120153-15
-------------------------------------------------------------- ------------------- PLR-120154-15
------------------------------------------------------------------- ------------------- PLR-120157-15
-------------------------------------------------------------- ------------------- PLR-120163-15
----------------------------------------------------------------- ------------------- PLR-120196-15
------------------------------------------------------------ ------------------- PLR-120199-15
---------------------------------------------------------------------------- ------------------- PLR-120212-15
---------------------------------------------------------------------------- ------------------- PLR-120072-15
-------------------------------------------------------------- ------------------- PLR-120213-15
PLR-113051-15 24

----------------------------------------------------------------- ------------------- PLR-120214-15
-------------------------------------------------------------------- ------------------- PLR-120216-15
---------------------------------------------------- ------------------- PLR-120218-15
-------------------------------------------------------------------- ------------------- PLR-120219-15
------------------------------------------------------------------- ------------------- PLR-120220-15
-------------------------------------------------------------------- ------------------- PLR-120221-15
--------------------------------------------------------------------------------- ------------------- PLR-120222-15
-------------------------------------------------------------------- ------------------- PLR-120223-15
---------------------------------------------------------------------- ------------------- PLR-120224-15
-------------------------------------------------------------------- ------------------- PLR-120225-15
---------------------------------------------------------------- ------------------- PLR-120227-15
----------------------------------------------------------------- ------------------- PLR-120230-15
----------------------------------------------------------------- ------------------- PLR-120233-15
-------------------------------------------------- ------------------- PLR-120234-15
---------------------------------------------------------------- ------------------- PLR-120235-15
---------------------------------------------------------------- ------------------- PLR-120237-15
---------------------------------------------------------------- ------------------- PLR-120238-15
---------------------------------------------------------------- ------------------- PLR-120239-15
---------------------------------------------------------------- ------------------- PLR-120244-15
---------------------------------------------------------- ------------------- PLR-120245-15
------------------------------------------------------------------ ------------------- PLR-120248-15
-------------------------------------------------------------- ------------------- PLR-120331-15
----------------------------------------------------------------- ------------------- PLR-120336-15
---------------------------------------------------------------- ------------------- PLR-120337-15
----------------------------------------------------------------- ------------------- PLR-120339-15
---------------------------------------------------------------- ------------------- PLR-120343-15
--
------------------------------------------------------------------------------ ------------------- PLR-120344-15
--------------------------------------------------------------- ------------------- PLR-120348-15
----------------------------------------------------------------- ------------------- PLR-120349-15
----------------------------------------------------------------- ------------------- PLR-120350-15
--------------------------------------------------------------- ------------------- PLR-120351-15
-------------------------------------------------------------- ------------------- PLR-120352-15
------------------------------------------------------------- ------------------- PLR-120359-15
---------------------------------------------------- ------------------- PLR-120353-15
--------------------------------------------------------------------------------- ------------------- PLR-120354-15
-------------------------------------------------- ------------------- PLR-120354-15
PLR-113051-15 25

-------------------------------------------------- ------------------- PLR-120357-15
------------------------------------------------------------------ ------------------- PLR-120358-15
------------------------------------------------------------------ ------------------- PLR-120360-15
-------------------------------------------------- ------------------- PLR-120361-15
------------------------------------------------------------------------------- ------------------- PLR-120362-15
--------------------------------------------------------------- ------------------- PLR-120363-15
--------------------------------------------------------------- ------------------- PLR-120364-15
------------------------------------------------------------------------- ------------------- PLR-120369-15
-------------------------------------------------------------------- ------------------- PLR-120053-15
------------------------------------------------------------------------ ------------------- PLR-119967-15
------------------------------------------------------------------------ ------------------- PLR-119969-15
----------------------------------------------------------- ------------------- PLR-119977-15
----------------------------------------------------------------- ------------------- PLR-120096-15
------------------------------------------------------------------------------ ------------------- PLR-120105-15
------------------------------------------------------------------ ------------------- PLR-119984-15
---------------------------------------------------------------- ------------------- PLR-119994-15
------------------------------------------------------------------ ------------------- PLR-119996-15
------------------------------------------------------------------ ------------------- PLR-120048-15
-------------------------------------------------------------- ------------------- PLR-120062-15
------------------------------------------------------------------ ------------------- PLR-120083-15
------------------------------------------------------------- ------------------- PLR-120087-15
------------------------------------------------------------- ------------------- PLR-120093-15
------------------------------------------------------ ------------------- PLR-120099-15
-------------------------------------------------------------- ------------------- PLR-120119-15
---------------------------------------------------------------- ------------------- PLR-120117-15
------------------------------------------------------------- ------------------- PLR-120130-15
------------------------------------------------------------------------------ ------------------- PLR-120205-15
------------------------------------------------------------ ------------------- PLR-120051-15
------------------------------------------------------------------- ------------------- PLR-120071-15
------------------------------------------------------ ------------------- PLR-120092-15
------------------------------------------------------- ------------------- PLR-120136-15
------------------------------------------------------- ------------------- PLR-120138-15
------------------------------------------------------ ------------------- PLR-120143-15
------------------------------------------------------------------- ------------------- PLR-120147-15
------------------------------------------------------------ ------------------- PLR-120149-15
------------------------------------------------------------------------ ------------------- PLR-120156-15
PLR-113051-15 26

---------------------------------------------------------------------- ------------------- PLR-120197-15
---------------------------------------------------------------------- ------------------- PLR-120200-15
------------------------------------------------------- ------------------- PLR-120226-15
--------------------------------------------------------------------- ------------------- PLR-120346-15
--------------------------------------- ------------------- PLR-120366-15
------------------------------------------------------- ------------------- PLR-120367-15
------------------------------------------------------------ ------------------- PLR-120372-15
------------------------------------------------------------ ------------------- PLR-120077-15
--------------------------------------------------------- ------------------- PLR-120377-15
-------------------------------------------------------- ------------------- PLR-120381-15
---------------------------------------------------------- ------------------- PLR-120382-15
---------------------------------------------------------- ------------------- PLR-120385-15
--------------------------------------------------------- ------------------- PLR-120387-15
-------------------------------------------- ------------------- PLR-120388-15
--------------------------------------------- ------------------- PLR-120329-15
---------------------------------------------------------- ------------------- PLR-120393-15
----------------------------------------------------------------- ------------------- PLR-120400-15
-------------------------------------------------------------- ------------------- PLR-120403-15
--------------------------------------------------------- ------------------- PLR-120407-15
---------------------------------------------------------- ------------------- PLR-120440-15
------------------------------------------------------- ------------------- PLR-120413-15
------------------------------------------------------------ ------------------- PLR-120415-15
------------------------------------------------------------ ------------------- PLR-120572-15
---------------------------------------------------------- ------------------- PLR-120421-15
------------------------------------------------------- ------------------- PLR-120423-15
-------------------------------------------------------------- ------------------- PLR-120425-15
---------------------------------------------------------- ------------------- PLR-120426-15
---------------------------------------------------------- ------------------- PLR-120428-15
---------------------------------------------------- ------------------- PLR-120429-15
-------------------------------------------------------------- ------------------- PLR-120430-15
---------------------------------------------------- ------------------- PLR-120432-15
---------------------------------------------------------- ------------------- PLR-120439-15
---------------------------------------------------------- ------------------- PLR-120097-15
----------------------------------------------------------------- ------------------- PLR-120442-15
------------------------------------------------------------------ ------------------- PLR-120107-15
--------------------------------------------------------------- ------------------- PLR-120444-15
PLR-113051-15 27

--------------------------------------------------------------- ------------------- PLR-120446-15
------------------------------------------- ------------------- PLR-120451-15
---------------------------------------------------------- ------------------- PLR-120452-15
---------------------------------------------------- ------------------- PLR-120453-15
---------------------------------------------------- ------------------- PLR-120454-15
---------------------------------------------------------- ------------------- PLR-120461-15
---------------------------------------------------- ------------------- PLR-120462-15
---------------------------------------------------------- ------------------- PLR-120466-15
---------------------------------------------------- ------------------- PLR-120480-15
---------------------------------------------- ------------------- PLR-120482-15
---------------------------------------------------- ------------------- PLR-120486-15
---------------------------------------------------- ------------------- PLR-120487-15
---------------------------------------------------------- ------------------- PLR-120488-15
---------------------------------------------------------- ------------------- PLR-120489-15
-------------------------------------------------------- ------------------- PLR-120490-15
---------------------------------------------------------- ------------------- PLR-120491-15
---------------------------------------------------------- ------------------- PLR-120493-15
---------------------------------------------------- ------------------- PLR-120494-15
-------------------------------------------------------- ------------------- PLR-120495-15
---------------------------------------------------- ------------------- PLR-120496-15
-------------------------------------------------------- ------------------- PLR-120497-15
-------------------------------------------------------- ------------------- PLR-120498-15
-------------------------------------------------------- ------------------- PLR-120499-15
-------------------------------------------------------- ------------------- PLR-120500-15
-------------------------------------------------------- ------------------- PLR-120501-15
-------------------------------------------------- ------------------- PLR-120502-15
-------------------------------------------------------- ------------------- PLR-120503-15
-------------------------------------------------------- ------------------- PLR-120504-15
---------------------------------------------------------- ------------------- PLR-120513-15
-------------------------------------------------------- ------------------- PLR-120516-15
------------------------------------------------------------ ------------------- PLR-120390-15
----------------------------------------------------------------- ------------------- PLR-120370-15
---------------------------------------------------------------- ------------------- PLR-120373-15
--------------------------------------------------------- ------------------- PLR-120374-15
---------------------------------------------------------- ------------------- PLR-120378-15
----------------------------------------------------------------- ------------------- PLR-120380-15
PLR-113051-15 28

----------------------------------------------------------------- ------------------- PLR-120383-15
----------------------------------------------------------------- ------------------- PLR-120384-15
----------------------------------------------------------------- ------------------- PLR-120386-15
---------------------------------------------------------- ------------------- PLR-120389-15
--------------------------------------------------------------- ------------------- PLR-120391-15
-------------------------------------------------------------- ------------------- PLR-120392-15
--------------------------------------------------------------- ------------------- PLR-120394-15
--------------------------------------------------------------- ------------------- PLR-120395-15
---------------------------------------------------------------------- ------------------- PLR-120401-15
---------------------------------------------------------------- ------------------- PLR-120404-15
----------------------------------------------------------- ------------------- PLR-120405-15
----------------------------------------------------------- ------------------- PLR-120406-15
---------------------------------------------------------- ------------------- PLR-120408-15
---------------------------------------------------------------- ------------------- PLR-120409-15
----------------------------------------------------------- ------------------- PLR-120410-15
----------------------------------------------------------------- ------------------- PLR-120411-15
---------------------------------------------------------------- ------------------- PLR-120412-15
----------------------------------------------------------------- ------------------- PLR-120437-15
---------------------------------------------------------- ------------------- PLR-120414-15
----------------------------------------------------------------- ------------------- PLR-120416-15
---------------------------------------------------------- ------------------- PLR-120417-15
---------------------------------------------------------- ------------------- PLR-120418-15
----------------------------------------------------------------- ------------------- PLR-120419-15
----------------------------------------------------------------- ------------------- PLR-120420-15
---------------------------------------------------------- ------------------- PLR-120422-15
----------------------------------------------------------------- ------------------- PLR-120424-15
---------------------------------------------------------- ------------------- PLR-120431-15
---------------------------------------------------------- ------------------- PLR-120435-15
------------------------------------------------------------ ------------------- PLR-120436-15
------------------------------------------------------- ------------------- PLR-120438-15
---------------------------------------------------------------- ------------------- PLR-120450-15
----------------------------------------------------------------- ------------------- PLR-120463-15
----------------------------------------------------------------- ------------------- PLR-120464-15
----------------------------------------------------------------- ------------------- PLR-120465-15
-------------------------------------------------------- ------------------- PLR-120468-15
------------------------------------------------------------ ------------------- PLR-120479-15
PLR-113051-15 29

---------------------------------------------------------------- ------------------- PLR-120476-15
--------------------------------------------------------------------------------- ------------------- PLR-120483-15
------------------------------------------------------- ------------------- PLR-120484-15
---------------------------------------------------------------- ------------------- PLR-120485-15
--------------------------------------------------------------- ------------------- PLR-120492-15
------------------------------------------------------------------- ------------------- PLR-120506-15
------------------------------------------------------------------- ------------------- PLR-120507-15
------------------------------------------------------------------- ------------------- PLR-120509-15
------------------------------------------------------------------- ------------------- PLR-120510-15
---------------------------------------------------------- ------------------- PLR-120514-15
---------------------------------------------------------------- ------------------- PLR-120515-15
---------------------------------------------------------------------------- ------------------- PLR-120375-15
-------------------------------------------------------------------------- ------------------- PLR-120396-15
--------------------------------------------------------------------- ------------------- PLR-120397-15
---------------------------------------------------------------------------- ------------------- PLR-120398-15
---------------------------------------------------------------------------- ------------------- PLR-120399-15
---------------------------------------------------------------------- ------------------- PLR-120433-15
---------------------------------------------------------------------------- ------------------- PLR-120441-15
-------------------------------------------------------------------------- ------------------- PLR-120443-15
-------------------------------------------------------------------------- ------------------- PLR-120445-15
-------------------------------------------------------------------------- ------------------- PLR-120447-15
-------------------------------------------------------------------------- ------------------- PLR-120448-15
-------------------------------------------------------------------------------- ------------------- PLR-120449-15
------------------------------------------------------------------------ ------------------- PLR-120508-15
-------------------------------------------------------------- ------------------- PLR-120434-15
-------------------------------------------------------------------------------- ------------------- PLR-120402-15
--------------------------------------------------------------- ------------------- PLR-120427-15
---------------------------------------------------------------------------------------- ------------------- PLR-120467-15

--------------------------------------------------------------- ------------------- PLR-120459-15
---------------------------------------------------------------- ------------------- PLR-120481-15

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This page covers one taxpayer's ruling from 2015, which can't be cited as precedent. Ezel answers your situation under the current Code and IRS guidance, with citations.

On this page

Document type

Private Letter Ruling

IRS subject

REMIC Defined

Topics

RICs and REITs

Code sections

§ 860D, § 860F, § 860G, § 6110

Ruling dated

October 5, 2015

Publicly released

December 31, 2015

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