The Government National Mortgage Association (GNMA) guaranteed a record $1.598 billion of reverse mortgage MBS (HMBS) in December, bringing 2009 issuance to $8.538 billion.
Ginnie Mae’s HMBS volume is up 629% compared to the $1.357 billion issued in 2008.
Reverse mortgage lenders started turned to Ginnie Mae last year after Fannie Mae drastically adjusted its pricing strategy and are showing no signs of turning back as investor demand continues to increase. In fact, “There really isn’t enough supply,” said David Fontanella of Knight Libertas at the National Reverse Mortgage Lenders Association Annual conference late last year.
With more reverse lenders waiting for Ginnie Mae approval to issue HMBS, volume in 2010 should continue to climb.