Issuance of reverse mortgage-backed securities drops in November

by Ryan Smith20 Dec 2016
There was a lower issuance of bonds backed by reverse mortgages in November than the previous month, according to a Reverse Mortgage Daily report. The drop was due largely to a lack of seasoned pools.

Home Equity Conversion Mortgage-backed securities (HMBS) issuance totaled about $718 million in November, down from October’s total of $832 million. Production of original new loan pools, meanwhile,  was $504 million – a slight increase from October.

During November, HMBS issuers created 53 original pools and 55 tail pools. Original pools are backed by the first participation in a previously uncertified MECM loan, according to Reverse Mortgage Daily. Tail issuances consist of subsequent participations.

Total outstanding HMBS rose to more than $55 billion, a $44 million increase from October.

Related Stories:

Reverse volume continues slide in November

Reverse leaders call for industry-wide data collection effort