The Government National Mortgage Association (GNMA) continues to see reverse mortgage volume grow, issuing a record setting $1.5 billion of HMBS in August. That brings GNMA’s YTD reverse mortgage volume to $3.680 billion.
The volume in August is more than all of GNMA’s HMBS volume in 2008 ($1.357 billion) and shows how the industry is turning to GNMA as an outlet compared to last year where Fannie Mae dominated the marketplace.
Below is a graph showing GNMA’s volume for 2009:
Is the industry’s reliance on Fannie Mae starting to shift to other investors? It’s clear that lenders are comfortable using GNMA for fixed rate production, but we are still lacking an attractive alternative for adjustable rate products.
Last week at the MBA conference, there was talk of a couple large banks becoming investors in HECM products and some are starting to test the waters. More on this later this week.