LIBOR Restriction Delay Decided With Reverse Mortgage Industry Input, Originators React

This week, the Government National Mortgage Association (GNMA, or “Ginnie Mae”) announced that it had delayed a previously-declared January 1, 2021 restriction on the eligibility of Home Equity Conversion Mortgage (HECM)-backed Securities (HMBS) for adjustable rate loans operating off of the London Interbank Offered Rate (LIBOR) index to March 1, 2021. The delay for originators […]

Ginnie Mae Delays LIBOR-based HMBS Restriction to March 2021

The Government National Mortgage Association (GNMA, or “Ginnie Mae”) has announced that its previously-declared restrictions on the eligibility of Home Equity Conversion Mortgage (HECM)-backed Securities (HMBS) for adjustable rate loans operating off of the London Interbank Offered Rate (LIBOR) index, previously effective for all HMBS issuances dated on or after January 1, 2021, has now […]

Reverse Mortgage Experts Detail Impacts of LIBOR Sunset, CMT Transition

Described as an “autumn surprise” in the opening remarks of the National Reverse Mortgage Lenders Association (NRMLA) Virtual Annual Meeting & Expo by association president Steve Irwin, the transition away from the London Interbank Offered Rate (LIBOR) index and toward the Constant Maturity Treasury (CMT) index is a pronounced disruption to the operations of the […]

Reverse Mortgage Lenders, Servicers and Software Providers Prepare for Rate Index Shift

As the timeline for the London Interbank Offered Rate (LIBOR) index’s service as the basis for adjustable-rate reverse mortgages has been considerably shortened after a decision last month by the Government National Mortgage Association (GNMA, or “Ginnie Mae”), the reverse mortgage industry has found itself needing to quickly adapt to the adoption of a new […]

January 2021 LIBOR Restriction Spurs Planning from Reverse Mortgage Industry

The shortened timetable for the restriction of the London Interbank Offered Rate (LIBOR) index to serve as the basis for adjustable-rate reverse mortgages has caused the reverse mortgage industry to take action, as the reverse mortgage trade association and capital markets experts have engaged in dialogue with government officials with the aim of adjusting the […]