HUD gave Fannie Mae approval to issue Remics.

Remics, which stands for real estate mortgage investment conduit, are tax-advantaged securities created by the Tax Reform Act of 1986. After a fierce debate, Housing and Urban Development Secretary Samuel R. Pierce Jr. gave the Federal National Mortgage Assn. approval to issue the new securities, but imposed conditions so Fannie Mae won’t dominate the new market. Among the restrictions are that Fannie Mae, a government-sponsored but privately run company, issue a maximum of $15 billion in Remics until July, 1988.