On April 10, the Internal Revenue Service released new guidance assisting servicers of residential loan pools taking advantage of the Treasury Department's Home Affordable Modification Program. First, the IRS released Rev. Proc. 2009-23, assuring that modifications to residential mortgage loans pursuant to the program will not cause disqualification of any real estate mortgage investment conduit (REMIC) or grantor trust. Second, the IRS released Notice 2009-36, stating that pursuant to the Notice and new regulations, any incentive or other payment made to a REMIC under the program will not be subject to the 100% tax on prohibited contributions to a REMIC.  

Read Rev. Proc. 2009-23 and Notice 2009-36.