Reverse Mortgage Securities Issuance Falls Off Cliff to End 2013

The issuance of reverse mortgage-backed securities fell off a cliff to end 2013, with zero transactions in December, according to New View Advisors based on Ginnie Mae data.

HREMIC issuance—the real estate mortgage investment conduits that comprise Ginnie Mae-guaranteed reverse mortgage securities, or HMBS—for the full year 2013 was down 18% from the previous year, with 26 transactions totaling $4.95 billion. In contrast, there were 31 transactions in 2012 for a total of more than $6 billion. 

Fourth quarter issuance fell sharply with just three HREMICS totaling $313 million. December’s zero transactions marked the first month since October 2011 that no new HREMICs were issued, according to New View.

Advertisement

Bank of America Merrill Lynch remained the top issuer, New View notes, capturing the “issuance crown” again in 2013 with 10 transactions totaling $2.4 billion. Not only was it 2013’s biggest issuer, but BAML is number one all-time with 43 HREMICs for $9.8 billion. 

Knight Capital came in second with four issuances for $668 million, while relative newcomer Stifel Nicolaus came in third with $617 million of issuance.

View the full rankings, compiled by New View Advisors.

Written by Alyssa Gerace