### Question
What does qualified replacement mortgage mean?


### Answer
**Qualified replacement mortgage** has the following meaning in *26 U.S.C. § 860G*:

> any obligation—



(A) which would be a qualified mortgage if transferred on the startup day in exchange for regular or residual interests in the REMIC, and



(B) which is received for—



(i) another obligation within the 3-month period beginning on the startup day, or



(ii) a defective obligation within the 2-year period beginning on the startup day

#### Citation:
  - *26 U.S.C. § 860G*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter M-Regulated Investment Companies and Real Estate Investment Trusts > PART IV-REAL ESTATE MORTGAGE INVESTMENT CONDUITS**

