HECM Mortgage-Backed Securities (“HMBS”) issuance in September totaled $491 million, $11 million less than August’s $502 million. 74 pools were issued in September, one fewer than August.
FAR was the top issuer in September with $151 million – a decrease of $1 million from August’s $152 million. Issuance from Longbridge was $114 million, up $3 million from August. Mutual of Omaha issuance increased by $3 million to $101 million. PHH issued $74 million – a $13 million decrease from last month’s $87 million. Ginnie Mae/RMF (aka “Issuer 42”) again issued no HMBS pools.
September’s original (first participation) production of $313 million was $9 million lower than August’s $322 million and $30 million lower than July’s $343 million.
The 74 pools issued in September consisted of 18 first-participation or original pools, 55 tail pools and 1 pool which included both first participations and tails. 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 $178 million compared to August’s $179 million.
There were 24 pools in September with an 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 $11.1 million of UPB that may not otherwise have been issued in September. 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 September for which more than one participation from the same loan was pooled is $64.8 million, of which $5.3 million were first participations.
New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources