Outstanding HMBS rose to a record $56.5 billion in May 2021, as payoffs and issuance remained high.\u00a0 Payoffs and issuance totaled just over $1 billion; total outstanding HMBS rose by just over $120 million, the approximate amount of total negative amortization. \u00a0The big payoff reflects continued high levels of refinancing.<\/p>\n
February was the last month in which GNMA allowed issuance of HMBS pools backed by first participations of LIBOR-indexed loans.\u00a0 For the time being, the Treasury CMT index replaces LIBOR as the base index for newly originated adjustable-rate HECM loans.<\/p>\n
In 2019, HMBS posted its lowest annual issuance total in five years.\u00a0 But in 2020 low interest rates and a higher lending limit boosted production significantly to a near-record $10.6 billion.\u00a0 So far this year, HMBS new issuance already totals $4.8 billion, on pace to exceed $11 billion in 2021.<\/p>\n
\u201cPeak Buyout\u201d was an echo of the peak issuance from 2009 through the first half of 2013.\u00a0 Most of this production has already been repurchased by the issuers or repaid by borrowers.\u00a0 Each month fewer and fewer of these peak issuance loans remain, and with lower interest rates loans take longer to roll up to their buyout threshold, equal to 98% of their Maximum Claim Amount (\u201cMCA\u201d). \u00a0Our friends at Recursion<\/a> broke down the prepayment numbers further: last month\u2019s 98% MCA mandatory purchases totaled $199 million, falling below $200 million for the first time in nearly seven years.<\/p>\n New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.<\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Outstanding HMBS rose to a record $56.5 billion in May 2021, as payoffs and issuance remained high.\u00a0 Payoffs and issuance totaled just over $1 billion; total outstanding HMBS rose by just over $120 million, the approximate amount of total negative amortization. \u00a0The big payoff reflects continued high levels of refinancing. February was the last month […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-1799","post","type-post","status-publish","format-standard","hentry","category-hmbs"],"_links":{"self":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/1799","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/comments?post=1799"}],"version-history":[{"count":1,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/1799\/revisions"}],"predecessor-version":[{"id":1800,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/1799\/revisions\/1800"}],"wp:attachment":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/media?parent=1799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/categories?post=1799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/tags?post=1799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}