20
THE
LEADER IN
DEFAULT
SERVICING
NEWS
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RANKING REVERSE
MORTGAGE-BACKED
SECURITIES ISSUANCE
NewView Advisors, LLC, a financial
services firm based in New York, has
released a new look at the state of HECM
mortgage-backed securities for the first
quarter of 2018. HECM, the Federal Housing
Administration's (FHA) Home Equity
Conversion Mortgage reverse mortgage
program, allows homeowners to withdraw
some of the equity in their home and can
be pooled into HECM mortgage-backed
securities (HMBS) within the Ginnie Mae II
MBS program.
e year's first quarter saw the issuance
of $2.97 billion of HMBS, which amounts
to 28 percent of calendar 2017's entire yearly
issuance. However, NewView's report warns
that this number may be misleading. "Unless
highly seasoned HMBS becomes the norm,"
the report states, "expect much lower volume
for the remainder of 2018 due to the new
PLF curves in effect since October." HMBS
issuance volume for 2017 totaled $10.5 billion.
e record was set in 2010 at $10.7 billion.
NewView also ranked the top 10 issuers of
HMBS for Q1 2018, with Reverse Mortgage
Funding (RMF) topping the list with 42 pools
and an original aggregate amount of nearly $1.1
billion. at total gave RMF a 36.4 percent
market share for the quarter.
Coming in second was American Advisors
Group's $587.2 million and 19.8 percent market
share. Finance of America Reverse held the
third spot with $452.6 million and a 15.26
percent market share, followed by Ocwen
Loan Servicing in fourth with $222.8 million
and a 7.51 percent market share. Live Well
Financial rounds out the top five with $209.4
million in issuance and a 7.06 percent market
share.
NewView reports that the top five HMBS
issuers accounted for 86 percent of total
issuance in Q1. at's an increase of 6 percent
over Q 4 2017. HMBS issuance during Q 4
2017 totaled nearly $3.3 billion.
