In January, reverse mortgage lender Live Well Financial announced it had received approval to issue Ginnie Mae HECM Backed Mortgage Securities after a three-year-plus wait time. With the landscape for issuers having changed in recent months, is the timing of the approval a coincidence with two of the large HMBS issuers quitting the reverse mortgage [...]

Moody’s announced last week the downgrades of $5 billion in reverse mortgage bonds comprising 12 deals. The 16 securities remain on review for further downgrade, Moody’s said, citing falling home prices and longer liquidation timelines. The deals were structured to include some potential losses and the downgrades now reflect a greater loss expectation. “Falling home [...]

Following the recent announcement by MetLife that it will begin implementing a borrower financial assessment for its reverse mortgage loans, the investor market reaction is largely positive, although the decision is unlikely to have overwhelming implications. “I don’t think the impact on the secondary market will be as significant or as business changing as it [...]

Ginnie Mae reported $1.2 billion in profit for fiscal year 2011, an 84% increase over FY 2010 earnings of $541.5 million. The government owned corporation, which securitizes Home Equity Conversion Mortgages and other Federal Housing Administration-insured loans, this year passed Freddie Mac in the volume of mortgage backed securities that it has guaranteed, its executives [...]

The Government National Mortgage Association said it guaranteed $27.8 billion in mortgage backed securities in August. Lenders issued more than $15.1 billion of Ginnie Mae II single family pools and $7.67 billion Ginnie Mae I single-family pools, with the latest issuance also showing a 13% month-over-month decline for HECM Mortgage Backed Securities (HMBS).

Ginnie Mae announced Friday that it will now allow issuers to repurchase loans that have have completed the required three-month trial payment plans, pursuant to loan modification parameters authorized by the Federal Housing Administration and other agencies. By eliminating the loans that are at high risk for default, this change should serve to strengthen the performance of Ginnie [...]