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Read more: HMBS 2013 Q1: RMS Retains Crown244 HMBS pools totaling nearly $2.4 billion were issued in the first quarter of 2013. RMS retained its position as the top HMBS issuer by dollar amount, issuing 63 pools totaling nearly $905 million. RMS was followed by Urban Financial, Live Well, and Generation Mortgage, issuers of approximately $682.6 million, $275.2 million, and $243.5 million,…
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Read more: HREMICs 2013-First Quarter Keeps PaceFirst quarter 2013 HREMIC issuance matched last year’s record pace, with 8 HREMICs totaling $1.6 billion, according to Ginnie Mae data. Last year, 31 HREMICs came to market, totaling just over $6 billion. BofA Merrill Lynch edged out Knight Capital for the top underwriter/sponsor in the first quarter of 2013, leading 3 offerings totaling just…
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Read more: HMBS 2012: RMS Leads The PackHMBS issuance declined for the second year in a row, tracking the decline in HECM supply. 628 HMBS pools totaling nearly $8.6 billion were issued in 2012, down from $9.9 billion last year and almost 20% below 2010’s record $10.7 billion. For 2012, RMS was the top HMBS issuer, issuing 125 pools totaling nearly $2.6…
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Read more: HREMICs 2012Ginnie Mae’s HMBS and HREMIC programs serve as the main engine of finance for the reverse mortgage industry. According to Ginnie Mae’s published data, a record 31 HREMICs totaling $6.013 billion were issued in 2012, double the amount issued in 2011. For 2012, BofA Merrill Lynch was again the top underwriter/sponsor, leading 10 offerings totaling…
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Read more: Open Letter to the WSJ EditorsDecember 15, 2012 To the Editor, Re: “Mortgages in Reverse” editorial of December 15-16, 2012 Your editorial suggesting that FHA-insured reverse mortgages (called the Home Equity Conversion Mortgage or “HECM”) should be eliminated is akin to throwing out the baby with the bath water. The conditions that once allowed for a thriving private reverse mortgage…
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Read more: The New Trouble With HECMThe FHA released its FY 2012 HECM Actuarial Study and MMI Fund Report on November 16. The report reflects many changes to their economic and modeling assumptions, resulting in significantly higher projected losses for the HECM program. This is a dramatic turnaround from just a year ago. We criticized last year’s FHA actuarial study for…
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Read more: FHA’s Underwater Problem – Is the Worst Over?FHA recently released another updated Home Equity Conversion Mortgage (“HECM”) loan level data file, this time showing all FHA-insured reverse mortgages originated through November 2011. Once again, prepayment rates declined to new lows: the annual prepayment rate for seasoned HECMs is about 4.7%, compared to the historical average of 6.8%. We have adjusted our HECM…
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Read more: FHA Fiscal Year 2011 Annual Reports – Still Too RosyHUD released its FY 2011 annual reports on November 15, 2011, including the HUD Mutual Mortgage Insurance (MMI) report, the FHA Annual Management Report (AMR), and the HECM MMI Actuarial Analysis. Upon review, our conclusion is that HUD is still significantly understating the expected future losses in the HECM book of business. Others have concluded…
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Read more: Ed GainorAll of us at New View Advisors join our friends at Bingham McCutchen and the entire securitization community in mourning the loss of Ed Gainor, who passed away on July 22nd. Ed was a securities lawyer par excellence, and he was instrumental in the birth of the reverse mortgage capital markets. Ed was a teacher…
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Read more: FHA’s Underwater Problem – And Its Way Back to the SurfaceFHA recently released an updated loan level data file showing all HECMs originated through January 2011. Not surprisingly, prepayment rates have declined. We have adjusted our HECM “Prepayment By Borrower Age” table accordingly. The real news is that FHA included some new data fields in the January 2011 data set that were not released previously.…