What Does TMI Mean in Real Estate?

What Does TMI Mean in Real Estate?

TMI is an acronym that refers to the concept of taxable mortgage initiative, which is designed to reduce the large costs and complexity of financing for taxable first mortgage debt. A taxable mortgage initiative does this by taking away the need to have to issue taxable bonds in order to finance any affordable housing.

Instead, a construction lender will pick up a new mortgage and note and, once construction on the property is completed, the construction lender passes the mortgage onto a permanent lender that has been approved to do so. In the State of New York, some of the most common permanent lenders include the New York State Common Retirement System and the New York City Employee Retirement System.