New View Begins Monthly Release of Reverse Mortgage HREMIC Data

Financial services firm New View Advisors has begun monthly reporting of prepayment speeds for the reverse mortgage securities known as HREMICs. New View has long published prepayment data for HMBS reverse mortgage securities, but the new data release is focused on the securities backed by those HMBS.

For HREMIC securities, which first launched in 2008, New View is tracking monthly HREMIC prepayment activity, using the Dollar Amount Method.

Using the “Dollar Amount Method” allows subscribers to see prepayment speed based on the dollar among repaid rather than the number of loans or participations that pay off in a given period, New View explains in commentary announcing the new monthly distribution.

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The prepayment speed of each HREMIC is equal to the weighted average of the prepayment speeds of the underlying HMBS, New View explains further.

To date through May 2014 more than $21.5 billion of HREMICs have been issued, according to New View.

View the New View commentary introducing the new data rollout.

Written by Elizabeth Ecker