A real estate mortgage investment conduit is commonly referred to as REMIC; it is a group of mortgages that are taken together for the purpose of investment and gaining dividends based on the interest earned on each individual mortgage. In effect, it is an investment that will earn a set dividend based on the fact that all factors are known on the mortgages including total amount and annual interest rate.
A remic is a form of tax vehicle in which other securities can be issued against its value, including stocks and bonds. Even bad mortgages will be bundled together and represent a dividend for investors.