Alanna McCargo, President of Ginnie Mae, has been added to the lineup of speakers scheduled to appear at next month’s National Reverse Mortgage Lenders Association (NRMLA) Annual Meeting and Expo taking place in Nashville, Tennessee.
According to NRMLA, McCargo’s remarks will focus on how Ginnie Mae aims to support the housing agenda of the Biden administration, the company’s commitment to the Home Equity Conversion Mortgage (HECM)-backed Securities (HMBS) program, and the HMBS liquidity challenges that continue to impact the reverse mortgage business.
McCargo joins a lineup that will also include Federal Housing Administration (FHA) Commissioner Julia Gordon, who spoke at the event in 2022 in Atlanta.
Ginnie Mae’s important role in the reverse mortgage ecosystem has been amplified over the past year due to the late 2022 bankruptcy of leading lender and HMBS issuer Reverse Mortgage Funding (RMF). After RMF filed for bankruptcy, Ginnie Mae assumed control of its sizable HMBS portfolio.
At the time the portfolio was assumed, McCargo assured borrowers that their payments would not be impacted by the transition.
In a recent analysis, New View Advisors assessed the size of the RMF portfolio relative to the total HMBS market, which it said accounts for roughly 35% of all outstanding HMBS.
The size and complexity of the portfolio has been an issue for Ginnie Mae. Assuming the RMF portfolio, the GSE later said, necessitated additional staffing and operations resources in order to more effectively manage the portfolio.