{"id":3025,"date":"2026-11-10T11:46:32","date_gmt":"2026-11-10T16:46:32","guid":{"rendered":"https:\/\/newviewadvisors.com\/commentaries\/?p=3025"},"modified":"2026-11-10T11:46:32","modified_gmt":"2026-11-10T16:46:32","slug":"hmbs-october-2026-part-ii","status":"publish","type":"post","link":"https:\/\/newviewadvisors.com\/commentaries\/2026\/11\/10\/hmbs-october-2026-part-ii\/","title":{"rendered":"HMBS October 2026 Part II"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Total HMBS payoffs in October were 0.2% higher than September; the 1-mo prepayment speed for October was 14.1% compared to September\u2019s 13.9%. Outstanding HMBS decreased by $11.8 million to $56.17 billion, the 38th decrease in the last 45 months. The overall 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 0.8% and 2.9% over the last one and two years respectively, loan count dropped 5.0% and 11.4% over those same timeframes. The outstanding HMBS population in February 2021 included 311,617 HECMs; as of October 31st there were 235,902.<br><br>\u201cGinnie Mae \u2013 Reverse Mortgage Funding 42\u201d remains as issuer of record for 3,848 former RMF pools. About $204 million of Issuer 42\u2019s portfolio paid off in October, but Issuer 42 still accounts for $10.4 billion, or 19% 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>Finance of America is now the issuer of record for $23.7 billion or 42% of all outstanding HMBS, having replaced Ginnie Mae as the largest portfolio in 2024. Along with Longbridge, these three issuers account for 80% of all outstanding HMBS.<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 $316 million. Mandatory Purchases have averaged $398 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.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Total HMBS payoffs in October were 0.2% higher than September; the 1-mo prepayment speed for October was 14.1% compared to September\u2019s 13.9%. Outstanding HMBS decreased by $11.8 million to $56.17 billion, the 38th decrease in the last 45 months. The overall 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-3025","post","type-post","status-publish","format-standard","hentry","category-hmbs"],"_links":{"self":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/3025","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=3025"}],"version-history":[{"count":2,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/3025\/revisions"}],"predecessor-version":[{"id":3030,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/3025\/revisions\/3030"}],"wp:attachment":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/media?parent=3025"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/categories?post=3025"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/tags?post=3025"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}