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Read more: May 2018 HMBS: April Showers Bring … Not Many May FlowersAfter a robust month in April, HMBS issuance retreated to its new normal in May. Without the help of any highly seasoned pools, HMBS fell to $579 million, the lowest monthly level since September 2014. As we noted in previous blogs, reverse mortgage lenders face a long winter of reduced volume, primarily due to the…
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Read more: HMBS April 2018 Part II: Temporary Reprieve from Supply Shrinkage; Are We at Peak Mandatory Buyout?HMBS supply rose in April, increasing by nearly $360 million from $56.2 to $56.5 billion. High prepayments were outweighed by high issuance, including two large highly seasoned pools totaling $542 million. Without these seasoned pools, HMBS supply would have declined by over $180 million. We noted in our previous blogs that reverse mortgage lenders face…
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Read more: April 2018 HMBS: Perennials Bloom; New Growth SparseHMBS issuers welcomed the sunshine of their perennial favorites: tail issuance and highly seasoned collateral, which made for a bountiful spring bloom in April. Last month’s tail pool issuance topped $260 million. With the help of over $542 million in highly seasoned pools, HMBS issuance rose to $1.2 billion, the 7th highest monthly level ever.…
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Read more: Game of Loans II: HMBS Winter Wind Blows Away SupplyHMBS supply shrank significantly in March, falling over $200 million from $56.4 to $56.2 billion. High prepayments and low issuance combined to drive down the total float. The sixth time HMBS supply has declined month to month, this is by far the largest such shrinkage. Noted in our previous blog on March issuance, reverse mortgage…
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Read more: 2018Q1 HMBS Issuer Rankings – Seasoned Collateral Makes The DifferenceRMF surged to the top of the leaderboard in 2018Q1, issuing almost $1.1 billion of HMBS securities for a 36.4% market share, $491 million over #2 AAG’s $587.2 million and 19.8% market share. RMF’s totals include the issuance of highly seasoned pools in February. FAR stays in third with $453 million issued and 15.3% market…
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Read more: HREMIC Issuance 2018Q1: Last Gasp for VolumeHREMIC issuance for the first quarter of 2018 was $2.97 billion, the highest quarterly issuance total since the fourth quarter of 2015’s $3 billion. This volume trend is unlikely to continue based on the slowdown in HMBS. There were 5 transactions in the quarter underwritten by two sponsors, Nomura and Citigroup. For 2018Q1, Nomura issued…
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Read more: Game of Loans: Long HMBS Winter Just Getting StartedWinter goes on for years in Westeros, the mythic land featured in Game of Thrones. Even worse, the inhabitants of that land have no idea how long they must endure: past winters lasted for as many as 5 years. Similarly, reverse mortgage lenders face a long winter of reduced volume, primarily due to the new…
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Read more: February 2018: Record HMBS Month — But Trending DownHMBS issuers sold a record 129 pools in February 2018, and posted the second highest dollar issuance, $1.47 billion. The dollar total is topped only by December 2009, at the peak of the old HECM regime’s fixed rate issuance boom. Two large highly seasoned original pools totaling $657 million were issued. February issuance divided into…
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Read more: New Year’s Resolution: Use HMBS Data ProperlyThe HMBS market began 2018 much like it began 2017, with a month of just under $870 million in total new issuance and range bound in total outstanding float. This may change in 2018 as the new Principal Limit Factors (“PLFs”) start to reduce origination volume. In January, HMBS float rose by over $112 million…
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Read more: HMBS December 2017: It Is Better to Give New Issuance than to Receive PayoffsThe HMBS market closed out 2017 with a strong month of new issuance but remains range bound in total size. Total HMBS float has been stuck between $54 billion and $56 billion for nearly two years, though this may change in 2018 as the new Principal Limit Factors (“PLFs”) start to reduce origination volume. In December…