The real value of data like the kind that will soon be available through MERS is in providing information needed to provide trends that will let lenders forecast the average cost difference between loans sold to Fannie Mae versus Ginnie Mae. It will be even more valuable when broken down by region, zip code, etc. Knowing the average life of a HECM not nationally but by city, county, districts, etc. should be extremely helpful. Crunching this kind of information and having it available to lenders should help take some of the risk out and resulting wasted costs in marketing, operations, and even administration. It should bring a better understanding of where to invest limited capital.

While diagnosing the cost areas impacted and reasonable estimates of the related costs is very important, it is the benefits that Ginnie Mae brings to the table that also must be considered. Selling to Ginnie Mae definitely has a cost barrier but it also can provide significant liquidity. Having an article providing cost estimates and describing benefits of selling to Ginnie Mae would be very helpful.