Residual Interest
A type of interest payment received by investors in a real estate mortgage investment conduit (REMIC).
Investopedia Commentary
Investors receive interest payments after all required regular interest has been paid to investors within higher priority tranches. Residual interest functions similar to common shares in that preferred shareholders receive all required dividends before any amount remaining is divided among common shareholders.
See also: Fannie Mae, Mortgage, Real Estate Mortgage Investment Conduits - (REMIC), Tranches