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Read more: HMBS May 2020: May Production BlossomsHMBS issuance totaled $767 million in May 2020, with strong new production leading the way. Beginning in March, the Coronavirus pandemic took its toll on the capital markets, reducing liquidity as lenders and investors pulled back. However, 91 pools were issued in May, a sharp contrast to the six year low of 77 pools in…
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Read more: HMBS April 2020 Part II: Float Remains in Equilibrium Just Above $54 BillionOutstanding HMBS rose by $185 million in April, as payoffs fell and issuance rose. Payoffs totaled approximately $800 million, down $50 million from last month. For several months, total outstanding HMBS has stayed at about $54 billion, in a state of equilibrium where new issuance and interest roll-up roughly equal payoffs. In 2019, HMBS posted…
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Read more: HECM Endorsement Analytics – April 2020HUD’s April 2020 HECM Endorsement Summary Report shows a total of just 1,601 endorsements, New View Advisors’ summary and analysis of which can be found here: NV Endorsement 2020_04. The impact of Coronavirus is undoubtedly the culprit of the slowdown. Lending activities have stalled meaningfully. The secondary market for the HMBS program has stabilized during the…
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Read more: HMBS April 2020: All Hail Tail Sales! April May be August Occasion or Slow March to RecoveryHMBS issuance totaled $813 million in April 2020, with a recovery in tail pools leading the way. Beginning in March, the Coronavirus pandemic took its toll on the capital markets, reducing liquidity as lenders and investors pulled back: March’s meager tally of 77 pools was a six year low for number of HMBS pools issued.…
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Read more: New View Advisors Reverse Mortgage Draw Index March 2020: Dog Days Bite, but Don’t BarkHMBS investors and issuers feared big draws in March. They worried that the widening crisis would panic reverse mortgage borrowers into a “run on the bank” mentality resulting in large draws on HECM Lines of Credit. This would increase the capital demands on HMBS issuers at a time when their own financing liquidity was decreasing.…
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Read more: Financial Assessment Is Working (Part VI)Financial Assessment is still working. Now in its sixth year, FHA’s policy of requiring the financial assessment (FA) of borrowers’ ability to pay has cut tax and insurance (T&I) defaults by over 75% and serious defaults by over two-thirds. These results continue to validate the encouraging data we shared in previous years. FHA’s objective for…
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Read more: HMBS March 2020 Part II: Float Remains in Equilibrium Just Above $54 BillionOutstanding HMBS fell by $61 million in March, as payoffs rose and issuance fell. Payoffs totaled approximately $860 million, up $45 million from last month. Total outstanding HMBS has stayed at about $54 billion the last several months, in a state of equilibrium where new issuance and interest roll-up roughly equal payoffs. In 2019, HMBS…
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Read more: 2020Q1 HMBS Issuer League Tables – AAG Extends Its LeadAAG increased its lead in 2020Q1 HMBS issuer rankings, with $586.6 million of issuance and 28% market share. FAR moved up two places to second, with $412.6 million issued and 20% market share. RMF stayed in third with $358.8 million issued and 17% market share. PHH Mortgage aka Liberty Reverse Mortgage moved up a notch…
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Read more: HECM Endorsement Analytics – March 2020HUD’s March 2020 HECM Endorsement Summary Report shows a total of 2,913 endorsements, 14% lower than last month’s 3,386, despite rates heading still lower again. Our summary report can be found here: NV Endorsement 2020_03. Among the big movers, AAG endorsed 799 loans, up 16% from last month’s 691 loans. Liberty Reverse Mortgage endorsed 235 loans,…
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Read more: HMBS March 2020: Issuance Tails OffHMBS issuance totaled $625 million in March 2020, with a notable decline in tail pools accounting for much of the reduced volume. As the month wore on, the Coronavirus pandemic increasingly took its toll on the capital markets, reducing liquidity as lenders and investors pulled back. Only 77 pools were issued in March, nearly a…