Items Tagged with 'HMBS'

ARTICLES

  • Ginnie Mae announces Platinum product for reverse mortgage-backed securities

    New program may increase liquidity in HMBS market
    Ginnie Mae has launched a new securitization channel for reverse mortgage-backed securities. Now, investors in the HECM mortgage-backed securities market can participate in Ginnie’s new Platinum HMBS program, which reduces the administrative costs of holding multiple and smaller HMBS securities and promises to bring more liquidity to the market.
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  • These are the top issuers of reverse mortgage-backed securities

    New View Advisors names biggest players, details low Q1 volume
    As reverse mortgage loan production steadily declines, so too has the issuance of the securities backed by this product on the secondary market. Issuers of HECM-backed securities, or HMBS, brought just under $1.7 billion to market in the first quarter of 2019, according to the latest report from New View Advisors. This is a 44% decline from last year and the lowest total in five years.
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  • Reverse mortgage securities fall to near 5-year low

    Will this downward trend right itself anytime soon?
    In a troubling sign of the poor health of the reverse mortgage market, issuance of HECM-backed securities fell to their lowest level in nearly five years. According to the latest commentary from New View Advisors, reverse mortgage issuance totaled just under $491 million in February and total outstanding HECM-mortgage backed securities fell below $55 million.
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  • Reverse mortgage securities continue downward march

    January issuance hovers near 4-year lows
    The reverse mortgage securities market continues to show the side effects of the HECM product's rough year. Issuance for HECM mortgage-backed securities, or HMBS, fell to just under $614 million in January, down from December’s $619 million, according to recent data from New View Advisors. The numbers reflect a tough year for HMBS, which closed out 2018 with $9.6 billion, a drop from 2017's $10.5 billion.
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  • Reverse mortgage securities market shrinks

    Will lower HMBS float scare off investors?
    Reverse mortgage volume has taken a nosedive in the past year, a fact that is glaringly evident by the product's performance in the secondary market. The latest from New View Advisors reveals that outstanding float of HECM-mortgage backed securities has fallen yet again. "At some point, declining float could affect HMBS liquidity and therefore pricing," said New View Partner Michael McCully.
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  • Reverse mortgage securities fall to 4-year low

    "The market has yet to find its new normal"
    The latest data on HECM-backed securities reveals that issuance fell in November to $521 million, hitting the lowest level in four years thanks to low origination volume. According to a report from New View Advisors, only 84 pools were issued in November, the lowest number since February 2015.
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  • Reverse mortgage securities continue decline

    Issuance totals highlight liquidity concerns
    The latest data on HECM-backed securities shows issuance continued its decline in October, and while HMBS float last month was up slightly to $55.5 billion, most of that can be attributed to highly seasoned collateral and not to new production. This means that it’s only a matter of time before HMBS float falls below the $55 billion mark – a vector that indicates less liquidity for investors.
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  • Finance of America Reverse issues second round of defaulted reverse mortgage bonds

    Deal signals continued investor appetite for HMBS
    Finance of America Reverse is back with a second round of defaulted reverse mortgage bonds. The $399 million offering is a solid marker of investor appetite for HECM-backed securities. “Every time one of these trades, it’s a good thing,” said Baseline President Dan Ribler. “It’s yet another data point that there is liquidity for this type of deal.”
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  • HECM mortgage-backed securities see $1 billion decline

    HMBS float continues to shrink thanks to record payoffs and low origination volume
    The latest data on HECM mortgage-backed securities reveals issuance is down in the third quarter to $1.7 billion – that’s about a billion less than totals from the previous two quarters. In a recent report, New View Advisors says the industry shouldn't expect this to turn around any time soon as low origination volumes challenge the space.
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