Written by Brett Varner, as originally published in The Reverse Review.

New issues of Ginnie Mae HECM Mortgage Backed Securities (HMBS) fell in August following two straight months of increases.

The $844 million in new issues was a 12.9% drop from the $969 million issued in July.  The decline shortened a reoccurring pattern over the past year and a half where HMBS issues would increase for three consecutive months prior to declining.

The average amount of new HMBS issued has also been declining.  After averaging $899 million per month in 2010, the average has fallen slightly to $891 million in 2011 and $846 million in the last four months.

HMBS accounted for just over 3% of the $27.8 millon total of mortgage-backed securities issued by Ginnie Mae, and 4.5% of the $18.6 billion total of Ginnie Mae II securities.