Reverse Mortgage Securities Issuance Drops 41% in First Quarter

Issuance of reverse mortgage securities dropped 41% in the first quarter of 2014 on an annual basis, according to Ginnie Mae data compiled by New View Advisors commentary.

The month of March saw just one HREMIC issuance and a total of six transactions in the quarter totaling $957 million. In comparison, 2013’s first quarter had eight transactions for a total of $1.66 billion of issuance. 

HREMIC issuance is the real estate mortgage investment conduit that comprise Ginnie Mae-guaranteed, home equity conversion mortgage securities, also known as HMBS.

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Bank of America Merrill Lynch stayed the dominant HREMIC issuer with a 56% market share, New View notes, with three issuances totaling $538.4 million.

Stifel came in second with two issuances for $300.8 million and 31.4% market share, while RBS had one transaction for $118.2 million and 12.4% of the market. 

Access the commentary and data at New View Advisors. 

Written by Alyssa Gerace