HECM Mortgage-Backed Securities (“HMBS”) issuance in August totaled $537 million, $74 million more than July’s $463 million and $35 million more than August 2025’s $502 million. 65 pools were issued in August, six more than July.
For all HMBS, FAR was the top issuer in August with $257 million – an increase of $80 million from July’s $177 million. Issuance from Longbridge was $135 million, a decrease of $6 million from July. Mutual of Omaha issuance increased by $9 million to $94 million. The next highest HMBS Issuer in August was TMAC with $18 million. Onity Mortgage Corporation issued $9 million – $1 million more than July. Ginnie Mae/RMF (aka “Issuer 42”) again issued no HMBS pools.
Original (“First Participation”) production in August was $309 million, an increase of $4 million from July, an increase of $19 million from June, and $13 million less than August 2025’s $322 million. Issuers will struggle to maintain this rate of production as the 10-year treasury yield continues its climb to 5%.
For the eight months of 2026, FAR was the top issuer of First Participation HMBS with $823 million issued, followed by Longbridge with $703 million, Mutual of Omaha with $487 million, and Onity with $151 million. Onity did not issue any First Participation pools in August.
The 65 pools issued in August consisted of 18 First Participation pools, 46 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 $227 million compared to July’s $158 million.
There were 15 pools in August 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 $8.7 million of UPB that July not otherwise have been issued in August. 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 August for which more than one participation from the same loan was pooled is $72.5 million, of which $7.9 million were First Participations.
New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.