NRMLA submitted comments to Ginnie Mae this week that responded to the agency’s recent actions to prohibit LIBOR-based loan pools in HECM Mortgage-Backed Securities beginning January 1, 2021.
It is our hope that we can work with GNMA to find a path towards adjusting the implementation timelines announced in All Participant Memorandum 20-12 and mitigate the severe impacts to HECM borrower applicants that would be created by this policy announcement. NRMLA will keep members updated as we work through this issue.
NRMLA thanks the HMBS Issuer Committee for its strong work on drafting the response and the leadership of Tim Isgro of Reverse Mortgage Funding LLC and Mike McCully of New View Advisors in working with the committee
According to APM 20-12, LIBOR-based adjustable rate HECM loans that are not securitized as of January 1, 2021, will be ineligible for pooling without regard to their date of origination or the date in which the corresponding FHA case number was assigned. Participations associated with a HECM loan that is backing HMBS with an issuance date on or before December 1, 2020, will continue to be eligible for securitization without restriction until further notice