{"id":1823,"date":"2021-07-16T09:55:31","date_gmt":"2021-07-16T13:55:31","guid":{"rendered":"https:\/\/www.newviewadvisors.com\/commentary\/?p=1823"},"modified":"2021-07-16T09:58:01","modified_gmt":"2021-07-16T13:58:01","slug":"hmbs-june-2021-part-ii-refi-wave-rolls-on","status":"publish","type":"post","link":"https:\/\/newviewadvisors.com\/commentaries\/2021\/07\/16\/hmbs-june-2021-part-ii-refi-wave-rolls-on\/","title":{"rendered":"HMBS June 2021 Part II: Refi Wave Rolls On"},"content":{"rendered":"<p>Outstanding HMBS fell to just under $56.5 billion in June, as record HECM loan payoffs outpaced issuance. HMBS payoffs exceeded $1.1 billion, a dollar amount surpassed only by the assignment wave of 2018. For voluntary payments, including refinancings, June 2021 was a record month. Outstanding HMBS fell by about $50 million. The big payoff reflects continued high levels of refinancing, as low rates and high home prices allow more homeowners to borrow new, larger HECM loans.<\/p>\n<p>February was the last month in which GNMA allowed issuance of HMBS pools backed by first participations of LIBOR-indexed loans. For the time being, the Treasury CMT index replaces LIBOR as the base index for newly originated adjustable-rate HECM loans.<\/p>\n<p>For 2019, HMBS posted its lowest annual issuance total in five years. In 2020, low interest rates and a higher lending limit boosted production significantly to a near-record $10.6 billion. At the halfway mark in 2021, HMBS issuance totals $5.8 billion, on pace to exceed $11 billion.<\/p>\n<p>Our friends at <a href=\"https:\/\/www.recursionco.com\/\">Recursion<\/a> broke down the prepayment numbers further: last month\u2019s 98% MCA mandatory purchases totaled $220 million, just 19.1% of the total.<\/p>\n<p>New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Outstanding HMBS fell to just under $56.5 billion in June, as record HECM loan payoffs outpaced issuance. HMBS payoffs exceeded $1.1 billion, a dollar amount surpassed only by the assignment wave of 2018. For voluntary payments, including refinancings, June 2021 was a record month. Outstanding HMBS fell by about $50 million. The big payoff reflects [&hellip;]<\/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-1823","post","type-post","status-publish","format-standard","hentry","category-hmbs"],"_links":{"self":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/1823","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=1823"}],"version-history":[{"count":4,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/1823\/revisions"}],"predecessor-version":[{"id":1830,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/1823\/revisions\/1830"}],"wp:attachment":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/media?parent=1823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/categories?post=1823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/tags?post=1823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}