Sun West Mortgage Takes Advantage of Ginnie Mae Reverse Mortgage Program

311585While secondary market conditions continue to look worse, reverse mortgage lenders are still taking advantage of Ginnie Mae’s new HECM MBS program to provide liquidity.  In July, Sun West Mortgage Company (SWMC) completed $150 million in issuances of Ginnie Mae HMBS Reverse Mortgage securities where it acted as a Master Servicer for the transaction.

"We are witnessing increased investor interest in Ginnie Mae HECM securitization, ultimately creating more options and growth for the industry," says Pavan Agarwal, vice president, Sun West Mortgage Company.  "Ginnie Mae has been a leading liquidity source for the Fixed-rate HECM," he adds. "This latest transaction further establishes Sun West as an HMBS Reverse Mortgage leader in both volume and experience."

SWMC uses its ReverseSoft proprietary reverse mortgage system to automate the process of organizing and formatting the loan data, both for transmission to the issuer’s document custodian and for delivery to Ginnie Mae through GinnieNet.  According to the press release, ReverseSoft’s design enables straightforward integration with third-party issuer/servicer software for originators who are looking for a GNMA HMBS takeout but don’t have the systems to support it. 

Since Ginnie Mae’s inception of the product in 2007, there has been a total of $648 million in GNMA HMBS issued.

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