{"id":2764,"date":"2025-10-09T17:33:54","date_gmt":"2025-10-09T22:33:54","guid":{"rendered":"https:\/\/newviewadvisors.com\/commentaries\/?p=2764"},"modified":"2025-10-09T17:33:54","modified_gmt":"2025-10-09T22:33:54","slug":"hmbs-september-2025-part-ii","status":"publish","type":"post","link":"https:\/\/newviewadvisors.com\/commentaries\/2025\/10\/09\/hmbs-september-2025-part-ii\/","title":{"rendered":"HMBS September 2025 Part II"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Total HMBS payoffs in September were slightly lower than August; the 1-mo prepayment speed for September was 18.0% per annum, compared to August\u2019s 18.2%. Outstanding HMBS decreased $154 million to $56.8 billion, the 28th decrease in the last 32 months. The decline in HMBS understates the true story in outstanding HMBS and HECMs, because negative amortization of underlying HECM loans mitigates dropping HMBS balances. While HMBS balances declined 2.0% and 3.8% over the last one and two years respectively, loan count dropped 6.8% and 12.9% over those same timeframes.<br><br>Finance of America is the issuer of record for $17.9 billion or 31% of all outstanding HMBS, having replaced Ginnie Mae as the largest portfolio in 2024. Along with Longbridge and PHH, the top four issuers of record accounted for 88% of outstanding HMBS in September.<br><br>\u201cGinnie Mae \u2013 Reverse Mortgage Funding 42\u201d remains as issuer of record for 3,940 former RMF pools. About $322 million of Issuer 42\u2019s portfolio paid off in September, but Issuer 42 still accounts for $12.9 billion, or 23% 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.<br><br>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 <a href=\"https:\/\/www.recursionco.com\">Recursion<\/a>, payoffs last month due to Mandatory Purchases were $443 million. Mandatory Purchases have averaged $435 million, $430 million and $440 million over the last 6, 12, and 24 months, respectively.<br><br>New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.<br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Total HMBS payoffs in September were slightly lower than August; the 1-mo prepayment speed for September was 18.0% per annum, compared to August\u2019s 18.2%. Outstanding HMBS decreased $154 million to $56.8 billion, the 28th decrease in the last 32 months. The decline in HMBS understates the true story in outstanding HMBS and HECMs, because negative [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-2764","post","type-post","status-publish","format-standard","hentry","category-hmbs"],"_links":{"self":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/2764","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=2764"}],"version-history":[{"count":2,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/2764\/revisions"}],"predecessor-version":[{"id":2769,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/2764\/revisions\/2769"}],"wp:attachment":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/media?parent=2764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/categories?post=2764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/tags?post=2764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}