What will happen to HMBS 2.0 under the freezing of the regulations by Trump?
Many housing experts had expected this in the months prior to the inauguration. But the last term sheet of HMBS 2.0 arrived almost two months before the inauguration of Trump, and the release of the term sheet may not be “definitive regulations” strictly under the provisions of the Executive Decree, according to the opinion of a mortgage policy officer.
Housing wire‘s Reverse MortGage Daily (RMD) contacted relevant trade groups about the possible timeline. The Mortgage Bankers Association (MBA) remains committed to the implementation of HMBS 2.0, according to Pete Mills, MBA senior vice-president of residential policy and strategic involvement of industry.
“MBA supports the progress of the HMBS 2.0 implementation,” Mills told RMD. “It is in line with the aim of reducing costs in the long term, supports much-needed extra liquidity in the HMBS market and will help to control the risks associated with the HECM program.”
But regardless of the potential scope of the order itself, others expected that every outstanding policy would probably be influenced by the political transition. Steve Irwin, chairman of the National Association of Reverse Mortgage Punters (NRMLA), said that the association will continue its work to ensure that HMBS 2.0 reaches the proverbial finish.
“I expected such a freezing from any proposed regulations that could be pending, and the introduction of new rules,” Irwin told RMD. “This kind of freezing of the regulations is typical of an administrative transition. I work together with the Executive Committee of the NRMLA to further analyze the extent of the consequences of this announcement. ”
But Ginnie Mae himself has been silent since the release of the term sheet about new developments for HMBS 2.0. RMD contacted Hud and Ginnie Mae officials several times about the possible implementation time line of the program, but a HUD spokesperson said that the government company had nothing to share at the moment.
In the company’s financial report on the tax year 2024, Ginnie Mae discussed the additional program several times as proof of the work that the company does to improve liquidity and market participation.
The company said it is committed to “maintaining a well-functioning HMBS program that meets the needs of older Americans,” said the December report, and it will continue to work with its partners and stakeholders from the sector to access to facilitate liquidity.
“We believe that the path we follow, in collaboration with stakeholders from the sector, will play an important role in improving the HMBS program,” said the report. “The proposed changes will offer EMPENTENTS better access to liquidity and lead to a more robust HMBS market.”
But this report was also carried out under the Biden government, and further action in the field of housing under the new Trump government will probably “pause” until the government nominated by the HUD, Scott Turner, is sitting.
Turner conquered a logistics obstacle to take a seat on Thursday when his nomination came out of the closet Senate Commission for Banking, Housing and Urban Affairs on a party line mood. His appointment is now going to the entire Senate, and political analysts seem to agree largely that he will probably be confirmed.
As soon as that happens, there is a greater chance that other important decision makers-including a candidate to succeed Julia Gordon as a FHA commissioner, and a potential new candidate for the presidency of Ginnie Mae-will be nominated.
On Thursday, MBA called for Turner’s rapid confirmation and said that his confirmation “is an important step in the direction of building his most important staff and installing leadership at [FHA] And Ginnie Mae. NRMLA previously signed an earlier letter to leaders from the congress, in which it was also insisted on rapid action against the appointment of Turner.
