HECM Mortgage-Backed Securities (“HMBS”) issuance in March totaled $487 million, $17 million higher than February’s $470 million, although lower by day count. 70 pools were issued in March, seven fewer than February.
FAR was the top issuer again in March with $151 million – an increase of $26 million from February’s $125 million. Issuance from Longbridge increased to $111 million from $107 million. PHH issued $99 million – a $9 million increase from last month’s $90 million. Mutual of Omaha issuance decreased by $14 million to $81 million. Ginnie Mae/RMF (aka “Issuer 42”) again issued no HMBS pools.
March’s original (first participation) production of $317 million was $14 million higher than February’s $303 million and $89 million lower than January’s $406 million.
The 70 pools issued in March consisted of 21 first-participation or original pools, 48 tail pools and 1 pool consisting of both original and tail participations. Original pools are those HMBS pools backed by first participations in previously uncertificated HECM loans. Tail HMBS issuances are HMBS pools consisting of subsequent participations. Tails are not from new loans, but they do represent new amounts lent. Last month’s tail pool issuance totaled $169 million compared to February’s $167 million.
Notable in the March HMBS issuance data are 19 pools with aggregate pool size less than $1 million. Issuers are taking advantage of Ginnie Mae’s provision to issue pools as small as $250,000. This represents $11.0 million of UPB that may not otherwise have been issued in March. Ginnie Mae issued APM 23-11 in 2023 which allows participations from the same loan to be pooled more than once in the same month. The aggregate of participations pooled in March for which more than one participation from the same loan was pooled is $63.7 million, of which $2.6 million were first participations.
New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources
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