Outstanding HMBS rose to a record $56.8 billion in October 2021, as high levels of both issuance and HECM loan payoffs continued. HMBS payoffs exceeded $1 billion for the eighth month in a row. Outstanding HMBS rose by about $90 million. These big numbers, very similar to September\u2019s totals, reflect continued high levels of refinancing. Low interest rates and high home values allow more senior homeowners to borrow larger HECM loans.<\/p>\n
Despite sharply declining refinance volume in the forward mortgage market, HECMs refinancing remains strong. According to multiple sources, refinancing accounts for as much as one half of new originations.<\/p>\n
In 2019, HMBS posted its lowest annual issuance total in five years. But in 2020, low interest rates, rising home prices, and a higher lending limit boosted production significantly, to a near-record $10.6 billion. In the first ten months of 2021, HMBS new issuance already exceeds $10.4 billion. New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.<\/p>\n","protected":false},"excerpt":{"rendered":" Outstanding HMBS rose to a record $56.8 billion in October 2021, as high levels of both issuance and HECM loan payoffs continued. HMBS payoffs exceeded $1 billion for the eighth month in a row. Outstanding HMBS rose by about $90 million. These big numbers, very similar to September\u2019s totals, reflect continued high levels of refinancing. […]<\/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-1888","post","type-post","status-publish","format-standard","hentry","category-hmbs"],"_links":{"self":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/1888","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=1888"}],"version-history":[{"count":2,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/1888\/revisions"}],"predecessor-version":[{"id":1892,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/1888\/revisions\/1892"}],"wp:attachment":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/media?parent=1888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/categories?post=1888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/tags?post=1888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nOur friends at Recursion<\/a> broke down the prepayment numbers further: last month\u2019s 98% MCA mandatory purchases totaled $238 million, less than 20% of the total.<\/p>\n