RMS Leads Reverse Mortgage HMBS Issuance, Urban at No. 2

In a quarterly tally of reverse mortgage securities issuance through Ginnie Mae’s HECM-backed mortgage securities (HMBS) program, Reverse Mortgage Solutions (RMS) has maintained its position for the highest level of HMBS issuance during the quarter, according to a report by New View Advisors

With 63 pools totaling nearly $905 million during the first quarter, RMS remained the No. 1 issuer by total dollar amount, with Urban Financial, Live Well Financial, Generation Mortgage and Nationstar comprising the remainder of the top five issuers, New View finds. 

Urban totaled 64 pools and more than $682 in issuance, with Generation comprising $244 million and Live Well at $275 million. 

Among those companies that issue reverse mortgage HMBS, the 10 total have remained consistent with the addition of Liberty Home Equity Solutions as Wells Fargo has made its way off the list following its exit from the business. 

The total issuance in the first quarter reached a level of nearly $2.4 billion, according to research and analysis from New View. The total included a strong majority of fixed rate pools, in a total amount of $1.87 billion with adjustable rate pools comprising the remaining $0.52 billion. 

The first quarter marks the last for new reverse mortgage loan applications including the fixed rate standard product, which was suspended as of April 1 under recent Federal Housing Administration changes. Industry members have estimated that new originations will shift toward a greater proportion of adjustable rate loans and away from the previous compsotion, which skewed nearly 70% fixed-rate. 

View New View’s commentary with a full report of issuance for Q1.

Written by Elizabeth Ecker

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