{"id":2819,"date":"2026-01-12T14:28:15","date_gmt":"2026-01-12T19:28:15","guid":{"rendered":"https:\/\/newviewadvisors.com\/commentaries\/2026\/01\/12\/hmbs-december-2025-part-ii\/"},"modified":"2026-01-12T14:28:15","modified_gmt":"2026-01-12T19:28:15","slug":"hmbs-december-2025-part-ii","status":"publish","type":"post","link":"https:\/\/newviewadvisors.com\/commentaries\/2026\/01\/12\/hmbs-december-2025-part-ii\/","title":{"rendered":"HMBS December 2025 Part II"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Total HMBS payoffs in December were 1.2% higher than November; the 1-mo prepayment speed for December was 17.6% per annum compared to November\u2019s 16.4% per annum. Outstanding HMBS decreased $156 million to $56.43 billion, the 31st decrease in the last 35 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 2.4% and 4.2% over the last one and two years respectively, loan count dropped 7.0% and 13.2% over those same timeframes. The outstanding HMBS population in February 2021 included 311,617 HECMs; as of December 31, 2025 there were 245,560.<br><br>Finance of America is the issuer of record for $18.0 billion or 32% 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 account for 87% of outstanding HMBS. PHH recently announced the sale of its portfolio to Finance of America \u2013 together they account for 48.2% of outstanding HMBS.<br><br>\u201cGinnie Mae \u2013 Reverse Mortgage Funding 42\u201d remains as issuer of record for 3,921 former RMF pools. About $283 million of Issuer 42\u2019s portfolio paid off in December, but Issuer 42 still accounts for $12.2 billion, or 22% 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 $466 million. Mandatory Purchases have averaged $434 million over the last 24 months.<br><br>New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.<br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Total HMBS payoffs in December were 1.2% higher than November; the 1-mo prepayment speed for December was 17.6% per annum compared to November\u2019s 16.4% per annum. Outstanding HMBS decreased $156 million to $56.43 billion, the 31st decrease in the last 35 months. The decline in HMBS understates the true story in outstanding HMBS and HECMs [&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-2819","post","type-post","status-publish","format-standard","hentry","category-hmbs"],"_links":{"self":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/2819","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=2819"}],"version-history":[{"count":2,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/2819\/revisions"}],"predecessor-version":[{"id":2824,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/2819\/revisions\/2824"}],"wp:attachment":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/media?parent=2819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/categories?post=2819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/tags?post=2819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}