Total HMBS payoffs in January decreased from December; 1-mo prepayment speeds were 16.5% per annum compared to December\u2019s 18.3% per annum. Outstanding HMBS increased by $36 million to $57.9 billion \u2013 only the fourth increase in the last 24 months.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":" Total HMBS payoffs in January decreased from December; 1-mo prepayment speeds were 16.5% per annum compared to December\u2019s 18.3% per annum. Outstanding HMBS increased by $36 million to $57.9 billion \u2013 only the fourth increase in the last 24 months. Finance of America is the issuer of record for $17.7 billion or 30.6% of all […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-2639","post","type-post","status-publish","format-standard","hentry","category-hmbs"],"_links":{"self":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/2639","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\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/comments?post=2639"}],"version-history":[{"count":2,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/2639\/revisions"}],"predecessor-version":[{"id":2642,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/2639\/revisions\/2642"}],"wp:attachment":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/media?parent=2639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/categories?post=2639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/tags?post=2639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Finance of America is the issuer of record for $17.7 billion or 30.6% of all outstanding HMBS, having replaced Ginnie Mae as the largest portfolio in May 2024. Along with Longbridge and PHH, the top four issuers of record account for 90% of outstanding HMBS.
\u201cGinnie Mae \u2013 Reverse Mortgage Funding 42\u201d remains as issuer of record for 3,970 former RMF pools. About $312 million of Issuer 42\u2019s portfolio paid off in January, but Issuer 42 still accounts for $15.0 billion, or 26% of all outstanding HMBS. Issuer 42 has not issued any tail pools; we estimate Issuer 42 still has an uncertificated position of over $1 billion, that is, the excess of their portfolio\u2019s HECM asset balance over the balance of their HMBS liability.
When a HECM loan balance reaches 98% of its MCA, the HMBS issuer is required to buy the loans out of the HMBS pool and then assign the loan to HUD if the loan is not in default. This is effectively a prepayment event for the HMBS investor, even though the underlying HECM loan remains outstanding. According to our friends at Recursion<\/a>, payoffs last month due to Mandatory Purchases were $436 million. Mandatory Purchases have averaged $415 million, $421 million and $458 million over the last 6 months, 12 months and 24 months, respectively.
New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.
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