ARRC Chair: End of LIBOR Requires ‘Urgent’ Preparation in U.S.

The end of the London Interbank Offered Rate (LIBOR) index, slated for the end of this year, requires urgent action and collaboration between the public and private sectors. Though LIBOR has previously been described by financial analysts as “the world’s most important number,” there is some limitation to its reach. That does not diminish the […]

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 […]

Ginnie Mae: LIBOR-based HMBS Restricted Beginning in January 2021

The Government National Mortgage Association (GNMA, or “Ginnie Mae”) has announced new 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, effective for all HMBS issuances dated on or after January 1, 2021, nearly a year ahead of […]

Reverse Mortgage-backed Securities See a ‘Banner’ Production Month in August

The production of new Home Equity Conversion Mortgage-backed securities (HMBS) totaled approximately $859 million in August as both recovered capital markets and lower interest rates continue to strengthen new production, marking a “banner month” as HMBS issuers continued to see pronounced new production totals. This is according to publicly available Ginnie Mae data and private […]

Reverse Mortgage Capital Markets Show Strength During Pandemic Stress

The COVID-19 coronavirus pandemic had a pronounced effect on reverse mortgage capital markets shortly after the White House announced a national emergency related to the pandemic in March, but the markets have continued to recover. That’s not to say that the industry shouldn’t remain vigilant, however. This is according to Dan Ribler, director at real […]

Pandemic Reverse Mortgage Draws on Par with Previous Economic Shocks

In spite of the prevailing perception that Home Equity Conversion Mortgage (HECM)-backed Securities (HMBS) issuers feared big draws on HECM lines of credit in March in the immediate aftermath of the COVID-19 coronavirus emergency in the United States, data released by the Government National Mortgage Association (GNMA, or “Ginnie Mae”) does not reflect that as […]

Reverse Mortgage Capital Markets Stabilizing Post-Coronavirus Shock

Reverse mortgage capital markets were not spared from the economic impact of the COVID-19 coronavirus pandemic shortly after a national emergency was declared in the United States. However, new data on secondary market trading of Home Equity Conversion Mortgage (HECM)-backed securities (HMBS) appears to be showing increasing signs of stability, potentially signaling that additional stability […]

Reverse Mortgage Pricing Fluctuates During Coronavirus Pandemic

Pricing for Home Equity Conversion Mortgage (HECM) loans has been fluctuating in recent days due to the effects of the COVID-19 coronavirus pandemic, with reverse mortgage brokers and originators reporting drops in both basis points and in investor activity related to the trading of bonds and other financial products. Proprietary product pricing is also reportedly […]

Reverse Mortgage Securities Production Dips Slightly in February

The production of new Home Equity Conversion Mortgage-backed securities (HMBS) totaled approximately $707 million in February as low interest rates continue to strengthen new production, though this figure is lower than the $760 million total observed in January. This is according to publicly available Ginnie Mae data and private sources compiled by New View Advisors. […]