Reverse Mortgage-Backed Securities Market Shrinks for First Time

The Home Equity Conversion Mortgage-backed Securities (HMBS) market shrank for the first time, as a record level of prepayments drove total outstanding HMBS to just under $55 billion, according to the latest market commentary from New View Advisors. HMBS issuers created 97 pools in December 2016, totaling $715 million, according to data compiled by New […]

November Issuance of Reverse Mortgage-Backed Securities Tops $718 Million

A lack of seasoned pools led to lower issuance of Home Equity Conversion Mortgage-backed securities (HMBS) in November compared to the previous month, according to the latest commentary from New View Advisors. HMBS issuance totaled approximately $718 million in November—the fourth lowest monthly dollar volume this year—which was down from October’s total of $832 million. […]

HREMIC Issuance Tops $7.7 Billion, On Pace for Record Year—Again

Through the first nine months of 2016, HREMIC issuance was nearly $7.7 billion, exceeding last year’s volume—a previous record—of $6.5 billion during this same period, according to the latest market commentary from New View Advisors. With three-quarters of the year already in the books, the industry remains on pace to set its second consecutive annual […]

HREMIC Issuance Poised to ‘Smash’ Record $6 Billion Year

At $4.27 billion for the first six months of 2015, HREMIC issuance is already at 85% of 2014’s full-year issuance of $5.05 billion, and is expected to surpass 2012’s record $6 billion of issuance, according to the latest Ginnie Mae data compiled by New View Advisors.  Fifteen transactions underwritten by three sponsors — Nomura, Bank […]

Reverse Mortgage Volume Continues Steady Decline, But Some Buck Trend

For the fourth month in a row, home equity conversion mortgage (HECM) endorsement volumes have declined, dropping to the lowest level since September 2014, according to the latest data compiled by Reverse Market Insight (RMI).   In May, reverse mortgage volume fell -5% to 4,273 loans that month, a level not seen since last September when only 3,762 […]

LA Times: Why Reverse Mortgages Are a Wealth Management Tool

Loan of last resort: It’s the mantra that long defined the reverse mortgage. But changes to the reverse mortgage program have made the loan more attractive for aging Americans, and are even considered a wealth management tool, according to personal finance columnist Liz Weston. In a recent Los Angeles Times personal finance Q&A, Weston responds to a […]

Column: Reverse Mortgages Have Their Place In Retirement Planning

Is a reverse mortgage a good retirement strategy? Yes — well, for some people.  “Reverse mortgages have their place, but the problem is that they’re sold to people who shouldn’t have them because it doesn’t work for them,” Craig Smalley, a financial adviser and certified estate planner, tells MarketWatch in a recent column. “They are […]

Column: The Reverse Mortgage Paradox Traps Homeowners

While various news articles continue to tout how reverse mortgages can help struggling Americans through their retirement years, a recent ABC News column expresses a more cautious attitude, noting that “reverse mortgages may back you into a corner.” TV commercials and celebrity spokesmen — including former Sen. Fred Thompson, of American Advisors Group’s longstanding reverse mortgage […]

Mortgage Prof.: ‘Kosher’ Reverse Mortgages Would Simplify Product

In the complex world of home equity conversion mortgages (HECMs), a certification process would make it easier for seniors to navigate these financial products, writes Jack Guttentag, of The Mortgage Professor.  And the best way to do so? Label them “kosher.”  The kosher stamp on food means that it has been certified as fit for […]

WSJ: The Retirement Income Crisis is Real

In contrast to a recent column suggesting American retirees are doing just fine on the road to retirement, letters to The Wall Street Journal indicate otherwise.  Andrew Biggs’ and Sylvester Schieber’s Sept. 29 column, “The Imaginary Retirement-Income Crisis,” stirred a heated discussion among WSJ readers, who wrote in to tell the writers that their conclusion was drawn […]