Internal Revenue Service Publication 938 – REMICs Reporting Information

Internal Revenue Service Publication 938 – REMICs Reporting Information

By Daniel Edstrom
DTC Systems, Inc.

Publication 938 contains a directory listing of REMICs and CDOs.  It contains newly created REMICs and CDOs as well as amended listings to existing REMICs and CDOs.  Interestingly the IRS did not publish this publication for 2008.  Why is this interesting?  It is the peak of the meltdown with the failure of Bear Stearns and Lehman Brothers.  Why is the IRS keeping this information a secret?  I have heard many interesting conspiracy theories, but my guess is “they” feel “we” can’t handle the truth.   From my review of these documents, I only have more questions.  Why are some REMICs not listed?  If Wells Fargo claims that World Savings Bank loans were held in house and not securitized, why are so many World Savings REMICs reported to the IRS?  Why is the REMIC claiming to hold my loan not listed in any of these documents?  Is it a law that all REMICs have to report themselves to the IRS for publication?

The Introduction to Publication 938 for 1996 states:

This publication contains directories relating to real estate mortgage investment conduits (REMICs) and collaterized debt obligations (CDO’s). The directory for each calendar quarter is based on information submitted to the Internal Revenue Service during that quarter. This publication is only available on the IRS electronic bulletin board and the Internet.
For each quarter, there is:
• A directory of new REMICs and CDOs,
and
• A section containing amended listings.
You can use the directory to find the representative of the REMIC or the issuer of the CDO from whom you can request tax information. The amended listing section shows changes to previously listed REMICs and CDOs.
The directory for each calendar quarter will be added to this publication approximately six weeks after the end of the quarter.

Publication 938 for 1998 shows the following two REMICs for World Savings:

World Savings REMIC I
Carol R. Holett, Vice President
c/o Bankers Trust Company of
California, N.A
3 Park Plaza, 16th Floor
Irvine, CA 92614
Tel: (714) 253-8406
CUSIP: Class A: 981921*AA7;
Class B: W09801*101
Startup/Issue Date: 06/12/1998

World Savings REMIC 1998-II
Carol R. Holett,Vice President
c/o Bankers Trust Company of
California, N.A.
3 Park Plaza
16th Floor
Irvine, CA 92614
Tel: (949) 253-8406
CUSIP: Class A: 98150Y*AA5;
Class B: 98150Y*AB3
Startup/Issue Date: 11/24/1998

The Publication 938 for 1999 shows the following two REMICs for World Savings:

World Savings REMIC 1999-I
June Pak, Assistant Treasurer
c/o Bankers Trust Company of
California, N.A.
3 Park Plaza, 16th Floor
Irvine, CA 92614
Tel: (949) 224-1571
CUSIP: Class A: 98150V AA1;
Class B: 98150V AB9;
Startup/Issue Date: 4/23/1999

World Savings REMIC 1999-II
June Pak, Assistant Treasurer
c/o Bankers Trust Company of
California, N.A.
3 Park Plaza, 16th Floor
Irvine, CA 92614
Tel: (949) 224-1571
CUSIP: Class A: 98150V*AD5;
Class B: 98150V*AE3
Startup/Issue Date: 6/25/1999

I won’t keep going, but World Savings REMICs V, VI, VII, VIII, IX, 10, 11, 12, 13, 14, 15   are also reported throughout the rest of the 938 publications.

So why weren’t World Savings REMICs III, IV and 16-35 reported on the IRS 938 Publications?

The following World Savings REMICs were voided in the IRS 938 Publications:

World Savings REMIC 1999-I

World Savings REMIC 1991-1

World Savings Remic 14

In the latest 938 Publication for March 2011 World Savings REMIC 14 was reported as void (terminated, paid off, cancelled or what?).  Interestingly enough my sources say that this REMIC (as well as numerous others) is paid off.  Wachovia acquired World Savings in 2007, and Wells Fargo acquired Wachovia in 2009.  This means that Wells Fargo would have had to report the information on World Savings REMIC 14 to the IRS.  Interesting.  Don’t attorneys call this an admission against interest?

Since Wells Fargo tells everyone the World Savings Bank loans were not securitized, which of the following applies:

  1. The loans were always held in house, were never securitized and these REMICs are not real and were never created.
  2. The loans were securitized, but for some reason or other the securitizations failed and the loans were repurchased or substituted and Wells Fargo reacquired them.
  3. World Savings / Wachovia / Wells Fargo attempted to securitize these loans, but as everyone knows after the mortgage meltdown, the loans never made it into the pools.  This means Wells Fargo does indeed hold the loans.  But it also means the loans have been paid in full and the investors are holding an empty bag.
  4. Some loans were held in house and some were securitized.

I find option #4 the most intriguing.  When you read the Pooling and Servicing Agreement for World Savings REMIC 12, it states that the master servicer (originally World Savings Bank but now Wells Fargo Bank) can institute foreclosure proceedings in their own name.  Meaning the foreclosure does not need to name the securitization trustee (Either Deutsche or The Bank of New York Mellon) nor the name of the trust.  In my opinion #1 is not very likely (<1% probability).

Download IRS 938 Publications:

1996: IRS P938 for 1996

1997: IRS P938 for 1997

1998: IRS P938 for 1998

1999: IRS P938 for 1999

2000: IRS P938 for 2000

2001: IRS P938 for 2001

2002: IRS P938 for 2002

2003: IRS P938 for 2003

2004: IRS P938 for 2004

2005: IRS P938 for 2005

2006: IRS P938 for 2006

2007: IRS P938 for 2007

2008: IRS P938 for 2008

2009: IRS P938 for 2009

2010: IRS P938 for 2010

2011: IRS P938 for 2011

2012: Missing

2013: Missing

2014: Missing

2015: Missing

2016: IRS P938 for 2016

Author: dmedstrom

Reverse Engineering and Failure Analysis - Reverse Engineering Wall Street

2 thoughts on “Internal Revenue Service Publication 938 – REMICs Reporting Information”

  1. Hello Dan,
    My alleged trust, Encore Credit Receivables Trust 2005-1 isn’t listed in 2004,2005,2006, or 07. While there are several later Encore trusts listed, mine isn’t one of them. Am I missing something, or what?
    Thanks for all the great posts.

    1. No, you are not missing anything. Many trusts are missing. I am not sure what purpose these documents serve (the IRS 938 publications) because they are so incomplete. What issues arise from a failure to give this information to the IRS? I have no idea. My (alleged) trust is not listed either (RASC Series 2005-EMX4).

      Maybe it is an indication that the trust doesn’t exist. After all if it existed, they would have reported that fact to the IRS.

      – Dan

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