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Reverse Mortgage Investor Market Sees HREMIC Issuance up 17%

The issuance of HREMICs, or the real estate mortgage investment conduits comprising reverse mortgage securities, saw an uptick of 17% during the first half of 2013, according to the latest Ginnie Mae data compiled by New View Advisors.

Use of the HREMIC for reverse mortgage investments has been on the rise, totalling $3 billion in the first half of this year, compared with $2.55 billion in the same period of 2012, according to New View.

Second quarter issuance, however, was down 17% from the first quarter, with six HREMICs comprising a total of $1.36 billion compared with eight HREMICs in the first quarter of this year.

Within the reverse mortgage secondary marketing during the second quarter, Bank of America Merrill Lynch led four offerings totaling $1.07 billion, New View reports with Barclays and RBS each responsible for one offering. Bank of America Merrill Lynch has maintained the “top spot” in each of the annual rankings from 2009 to 2013, having underwritten about half of all HREMIC volume.

The HREMIC first rolled out in 2008, allowing for inclusion of HECM backed mortgage securities.

View New View’s Commentary.

Written by Elizabeth Ecker