HMBS Issuer Rankings 2017Q3 – Active Issuer Count Hits New High Water Mark

AAG remains the leading HMBS Issuer for the first nine months of 2017, issuing $1.718 billion of securities for a 23.6% market share, $407 million over #2 Finance America Reverse’s $1.311 billion and 18.0% market share. AAG’s market share dropped marginally over 2017Q2, and FAR narrowed the gap by 1.3%.

Reverse Mortgage Funding stayed in third for the quarter with $1.181 billion issued and 16.2% market share. Ocwen Loan Servicing and Live Well Financial round out the top five issuers again. Ocwen issued $981.7 million for a 13.5% market share, and Live Well was fifth with $650.7 million issued for an 8.9% market share. There was no change in rankings from the second quarter, though Longbridge Financial entered the fray at #8 with $320.5 million issued. The top five issuers accounted for 80.1% of all issuance, down from last quarter’s 81.6%. There are now 16 active HMBS issuers in the industry, a new record.

Despite the much-reported slowdown in HECM endorsements, HMBS issuance remains robust, aided by growth in tail issuance and without highly seasoned pools. At this point, endorsement count has become a meaningless metric for gauging industry growth and health. Issuance volume totaled $7.292 billion for the first nine months of 2017, remaining on pace to surpass 2016’s full year production of $9.187 billion. 2010 was the record year for HMBS with $10.7 billion of securities issued.

(Editor’s note: The following was published with permission from New View Advisors, which compiled this data from publicly available Ginnie Mae data as well as private sources.)