Potential Debt Ceiling Disaster Has Less Impact on HECM Markets

The general market uncertainty surrounding the unresolved debt debate in Washington may not be the worst thing for the HECM investor market, for the moment. With the markets responding to the nation’s debt ceiling problem through volatility, HECM market pricing has shown much less of an impact, namely because of its cash flow profile, says […]

One Reverse Mortgage Gets GNMA Approval, Plans for Growth

One Reverse Mortgage announced today it has received approval to issue Ginnie Mae securities through GNMA’s HECM-Backed Securities program. The San Diego-based reverse mortgage division of Quicken Loans is the largest reverse-only lender, and upon the recent exits of Wells Fargo and Bank of America from the business, will assume the second spot for reverse […]

If Congress Fails to Raise Debt Ceiling, FHA Lending Could See Sudden Halt

If the government fails to come to debt limit terms, it could cost the mortgage industry—in a big way. If the debt limit is not raised through government action by the deadline of August 2, the Federal Housing Administration, as a “non-essential” government agency, could go on hiatus as part of an overall government shutdown, […]

Ginnie Mae HMBS Issuance Falls to $771 Million in May

The Government National Mortgage Association said it guaranteed more than $25.4 billion in mortgage backed securities in May. Lenders issued over $17.53 billion of Ginnie Mae II single family pools and $5.54 billion Ginnie Mae I single-family pools. Reverse mortgage lenders issued $771 million of HMBS product during the month, down from $1.029 billion in April. “The consistent […]

Fannie Mae Starts to Securitize HECM Portfolio, Issues $9 Billion BofA REMIC

Fannie Mae (OTC BB: FNMA.OB ) has securitized over $9 billion of HECM reverse mortgages—a little more than 18% of its total portfolio—in one transaction. The government sponsored enterprise issued a Real Estate Mortgage Investment Conduit (REMIC) consisting of $9,255,811,613 HECM loans originated by Bank of America. A REMIC is a type of multiclass mortgage-related security in which […]

Ginnie Mae HMBS Issuance Surpasses $1 Billion in April

Ginnie Mae issuance for HECM loans surpassed the $1 billion mark in April. At $1.029 billion, HMBS issuance saw a 9% increase over March issuance of $940 million. Historically, HMBS issuance has risen each month in 2011. Total Ginnie Mae issuance of mortgage-backed securities during the month totaled more than $26.4 billion, up from $24.1 billion […]

New Appetite for HMBS Helps Secondary Market Bounce Back

The secondary market for reverse mortgages has been a volatile thing, but recent trends show investor demand has increased and execution continues to improve. Over the last few weeks, pricing has bounced back as new investors continue to move into the market, according to Jeff Traister, managing director and head of agency and non-agency reverse […]

Urban Has “Nice” Impact on Knight Q1 Earnings

The performance of Urban Financial Group had a nice impact on Knight Captial Group’s profitability during the first quarter according to company executives of the Wall Street firm that acquired Urban last year. Tom Joyce, CEO of Knight Capital and Steve Bisgay, Knight senior managing director and CFO outlined the company gains, which amounted to $30.5 […]

SunWest Technology Compatible With New GNMA Servicing Requirements

Sun West announced its reverse mortgage origination platform is compatible with new Ginnie Mae servicing requirements. Earlier this month, Ginnie Mae eliminated the flat-fee option for servicing HECM mortgage-backed securities (HMBS) program and provided issuers more flexibility starting July 1st, 2011. Under the new guidelines, issuers can select an increased servicing margin of up to 150 […]