“Reverse mortgages are on the verge of explosive growth”
Ginnie Mae President Robert Couch
I came across an article from SNLi that featured Ginnie Mae President Robert Couch discussing the future of the reverse mortgage market. He mentions that Ginnie Mae is in the process of putting together the first Home Equity Conversion Mortgage (HECM) MBS issuance which is expected to take place by the end of Ginnie Mae’s fiscal year on Sept. 30. This will allow approved issuers to securitize and sell FHA-insured reverse mortgages in the form of a Ginnie Mae security.
Couch does mention that the transaction has received mixed reviews from servicers who think the servicing of these products is “somewhat complex”, because it differs significantly in a number of respects from the traditional forward mortgage products. However, he feels confident that Ginnie Mae’s HECM transaction is structured so as to provide simplicity to investors, and if successful, Couch said, it will “give the business some turbo-thrusters” through the addition of secondary-market execution.
Click here to read the full article from SNLi
Technorati tags: Reverse Mortgage, Mortgage Backed Securities, MBS, Senior Finance, HECM, Mortgage Finance
