Reverse Mortgage Investor Market Tallies $2.5 Billion of Q3 Transactions

HREMIC issuance shot up 83% in the third quarter of 2013 compared to the previous quarter, tallying activity that accounted for 45% of the entire year’s issuance to date.

HREMIC securities are the real estate mortgage investment conduits that comprise Ginnie Mae-guaranteed reverse mortgage securities (HMBS). For the first nine months of 2013, a total of 23 HREMIC securities totaling $5.48 billion have been issued, according to Ginnie Mae data compiled by New View Advisors.

In the third quarter alone, HREMIC issuance logged nine transactions for a total of $2.49 billion.

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Two new investors entered the field in the third quarter: Stifel Nicolaus and Nomura Securities, with $1.27 billion and $414 million of issuance, respectively, according to New View. 

Stifel became the second-largest HREMIC issuer in 2013 with its third-quarter entrance into the space, topped only by Bank of America Merrill Lynch.

BAML retained its “dominance” in the reverse mortgage investor market, New View says, accounting for nearly 44% of issuance for the first nine months of 2013. With three more HREMICs issued for $660 million, the lender has already surpassed its total 2012 issuance by $205 million. 

Written by Alyssa Gerace