Production of new reverse mortgage loan pools declined in October to roughly $325 million in issuance, down from $360 million in September and $344 million in August, according to data compiled by New View Advisors. This decline in new issuance counters recent arguments that a reverse mortgage recovery is underway following program changes implemented in October 2017.
Home Equity Conversion Mortgage-backed securities (HMBS) float grew in October. This small uptick is largely due to issuance of highly seasoned collateral, New View noted, including that despite more than $1 billion in payoffs, HBMS ended the month totaling $55.5 billion, up slightly from $55.3 billion at the end of September. Much of this issuance has been completed by Reverse Mortgage Funding, without which, float would have breached $55 billion on the downside.