RMS Keeps Top Spot for HMBS Issuance in 2013

In what could be the final push for fixed rate reverse mortgage securities following the shift away from the fixed rate HECM Standard product, Reverse Mortgage Solutions continued to lead the market in HECM-backed mortgage securities issuance in the first half of 2013.

Issuance during the quarter totaled $4.9 billion with the second quarter comprising $2.5 billion.

RMS, which issued more than 35% of HMBS pools in the first half of the year, according to commentary from New View Advisors, continues as the market leader after holding the top spot for issuance during the first quarter. RMS is followed by Urban Financial Group, Live Well, Generation Mortgage and Nationstar, which comprise together the top five issuers.

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While the number of issuers remained unchanged from the first quarter at 10 issuers, the number of pools rose to 500—more than the total number of pools in 2009, 2010 or 2011, New View writes.

“The higher number of pools represents the increasing percentage of ‘tail’ issuances as the amount of HMBS outstanding increases, producing more and more Additional Amounts eligible for certification from borrower draws, MIP, and other servicer advances,” New View explains in its commentary.

Fixed rate issuance made up the majority of HMBS, accounting for more than 67% of the total—perhaps for the last time, New View writes, following the suspension of the fixed rate standard reverse mortgage.

View the commentary and HMBS issuance by lender.

Written by Elizabeth Ecker