During a time when credit markets are hurting, Ginnie Mae continues to provide liquidity to reverse mortgage lenders. Last month Cerritos, California based Sun West Mortgage completed an issuance of $120 million in HECM Mortgage Backed Securities (HMBS). The three HMBS pools comprised of Libor HECM, CMT HECM and Fixed-Rate HECM reverse mortgage products, respectively, and marked Sun West’s debut as an Issuer to an HMBS transaction.
“The reverse mortgage market is poised for rapid growth in the coming years. Ginnie Mae’s HMBS program is a major step in meeting the crucial need for an active secondary market for HECMs,” says Pavan Agarwal, executive vice president, Sun West Mortgage. “In addition,” he adds, “HMBS addresses the growing need among investors for a safe, government-backed investment in these difficult economic times.”
The HMBS pools were made up of reverse mortgages from Sun West’s servicing portfolio, a majority of which were funded in-house. Sun West has also completed over $450 million in HMBS issuances as a Master Servicer, issuing pools composed of reverse mortgages closed by third-party lenders.