Reverse mortgage recommendations, the issue of securities fell in February

HECM -Volume

HECM notes fell by 6.1% to a total of 2,481 for February, an improvement compared to the totals that were seen in the same month of 2023 and 2024, but still under the figures that the industry placed in January.

It marks an improvement in the approval environment since the Federal Reserve began to increase interest rates in his constant fight against inflation, according to RMIs commentary To accompany the new data.

When asked for that difference, Jon McCue, director of RMI of customer relationships, said that it all comes down to rates, with a bit of an asterisk.

“It may not be what you think, because the 10-year-old CMT (constant adult treasury) is now higher than one of those previous years, but it is more or less leveled,” he said. “This would be in accordance with other observations that we are in a new ‘normal’, and the speed fluctuations do not have an impact on the volume, since they are not as steep as they were from 2020 to October 2023.”

The only segment that is really influenced by speed increases, according to MCCUE, is HECM-to-Hecm returns.

“Since that bubble now burst a while ago, we see things starting to find out the current tariff environment,” he added.

When he was asked about this movement compared to the past years, MCCUE said that the data was not so surprising in January because of the application data until October 2024. But because the rates began to rise at that time, he expected a greater decrease in February.

“If we had had the two or three extra days like every other month, the decrease might not even be what it was,” he said. “This continues to prove that we are probably more normal in the new that I have spoken about before. The rise in rates has smaller consequences for notes than the previous few years. “

HMBS -Award

To the question of the way in which the issue data relates to in the past two years, New View Advisors said partner Joe Kelly told Housing‘s Reverse MortGage Daily (RMD) that started very weakly 2023 and 2024.

The issue in the first half of the year can benefit from lower rates that are observed at the end of 2024, but it is still to see how long this dynamic can last, he added.

Speaking of the continuous question of the implementation of HMBS 2.0 – the new display of which RMD might have the potential to ‘double’ HMBS issue – Kelly said that the current liquidity environment is sufficient if the program is not implemented by Ginnie Mae.

‘But [2025] That can still be seen, “he said. “HMBS 2.0 is very important, especially given the potential changes at HUD/FHA.”

All major HMBS mittenters dropped in February.

Financing of America (FOA), the largest issuer, decreased to $ 125 million, decreasing from $ 35 million from January. Mutual or Omaha Mortgage The issue fell to $ 95 million, a decrease of $ 10 million compared to the previous month. And PHH MortGage Corp. According to new views $ 90 million spent, decrease of $ 29 million commentary About the new data.

When asked why every major issue placed losses, Kelly said that the data from January reflected from the more favorable tariff environment that was observed at the end of last year.

“The issue of last month reflected the higher rates earlier in the year and December,” said Kelly. “February also had a very low [business] Daily count of 19. “

During the day Ellington Financial‘s win -Call last month, the Longbridge Financial Parent praised that it had successfully completed his third patented reverse mortgage deviation. When asked how this contributes to the health of the overall industry, even though it is not part of the HMBS program, Kelly said it is the key.

“Upbone securitization is the essential liquidity instrument for their own loans, which in turn are essential for industry as long as Hecm wijns away with a low volume,” he said.

And when asked what the industry should keep in mind or priorities that should be maintained in 2025, Kelly has set the need for a lower premium for mortgage insurance on the HECM program. “HECM volume will not recover until this happens,” he said.