What is a Mortgage Investment Corporation ("MIC")

• A mortgage investment corporation (“MIC”) is a corporation that invests primarily in a portfolio of mortgages.

• The portfolio of mortgage investments is secured by real estate.

• A MIC does not pay corporate income tax on any of its income that it pays out to its shareholders as dividends and in this way it acts as a tax flow-through entity.

• The MIC’s income primarily consists of interest or distributions generated from its investments.

• Because it is a “flow through” entity, the dividends paid by the MIC to shareholders are generally taxed as interest in the hands of shareholders.

• A MIC allows an individual to invest in a portfolio of mortgage investments under professional management on a scale and with diversification not generally available to individual investors.

• The investor in a MIC earns a rate of return based on the net interest earned from the mortgage portfolio.