On September 1st, Ginnie Mae officially released their HECM Mortgage Backed Security (HMBS) program. Ginnie Mae’s HMBS are standardized mortgage-backed securities (MBS), which are collateralized by FHA insured HECM loans. The HMBS is a new class of Ginnie Mae security backed by HECM loan participation’s under the umbrella of the Ginnie Mae II Custom Program.
Currently, GNMA is only allowing the following pools of HECMs:
- Fixed Rate
- One Year Adjustable Rate, CMT
- Monthly Adjustable Rate, CMT
I did noticed that GNMA references LIBOR based products in their guides, but they specifically state that at the moment they will not be accepted. I would expect this to change in the near future since HUD recently approved the use of the LIBOR Index for HECMs and because lenders recently began announcing plans to offer LIBOR based HECMs. No word on when the first security will be issued, but this is great news considering the liquidity crisis that the mortgage industry is experiencing.
Technorati tags: Reverse Mortgage, Reverse Mortgage News, HECM, HMBS, Mortgage Backed Securities, GNMA
