Total HMBS payoffs in March increased from February; 1-mo prepayment speeds were 18.0% per annum compared to February\u2019s 17.3% per annum. Outstanding HMBS decreased by $159 million to $57.6 billion \u2013 the 22nd decrease in the last 24 months.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":" Total HMBS payoffs in March increased from February; 1-mo prepayment speeds were 18.0% per annum compared to February\u2019s 17.3% per annum. Outstanding HMBS decreased by $159 million to $57.6 billion \u2013 the 22nd decrease in the last 24 months. Finance of America is issuer of record for $17.8 billion or 30.8% of all outstanding HMBS, […]<\/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-2668","post","type-post","status-publish","format-standard","hentry","category-hmbs"],"_links":{"self":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/2668","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=2668"}],"version-history":[{"count":2,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/2668\/revisions"}],"predecessor-version":[{"id":2671,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/2668\/revisions\/2671"}],"wp:attachment":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/media?parent=2668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/categories?post=2668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/tags?post=2668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Finance of America is issuer of record for $17.8 billion or 30.8% 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 3,964 former RMF pools. About $348 million of Issuer 42\u2019s portfolio paid off in March, but Issuer 42 still accounts for $14.5 billion, or 25% 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 $445 million. Mandatory Purchases have averaged $425 million, $426 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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