HECM Mortgage-Backed Securities (“HMBS”) issuance in November totaled $516 million, $11 million less than October’s $527 million. 62 pools were issued in November, eleven fewer than October.
FAR was the top issuer in November with $167 million – an increase of $3 million from October’s $164 million. Issuance from Longbridge was $124 million, down $4 million from October. Mutual of Omaha issuance decreased by $2 million to $94 million. PHH issued $79 million – an $8 million decrease from last month’s $87 million. Ginnie Mae/RMF (aka “Issuer 42”) again issued no HMBS pools.
November’s original (first participation) production of $333 million was $2 million lower than October’s $335 million but $20 million higher than September’s $313 million.
The 62 pools issued in November consisted of 19 first-participation or original pools and 43 tail pools. 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 $183 million compared to October’s $189 million.
There were 13 pools in November 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 $6.6 million of UPB that may not otherwise have been issued in November. 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 November for which more than one participation from the same loan was pooled is $64.8 million, of which $7.4 million were first participations.