HMBS November 2021: Issuers Give Thanks for Record-Smashing Month

HMBS November 2021: Issuers Give Thanks for Record-Smashing Month

HMBS issuers rewrote the records books in November, posting yet another $1.2 billion month and setting new HMBS records for both total annual issuance and monthly original loan pools. Refinancing activity continued to be strong. 96 pools were issued in November, including 52 first-participation CMT pools. Before January 2021 no new first-participation CMT pools had been issued for many years.

With November’s activity, HMBS issuance now stands at $11.7 billion for 2021, an all-time record. The previous all-time HMBS annual volume year was 2010, with $10.8 billion issued. November’s production of original new loan pools was a record $1.08 billion, edging out October’s previous record $1.07 billion. Approximately $765 million in original new loan pools were issued in November 2020.

November issuance divided into 63 first-participation or original pools, and 33 tail pools. Original pools are those HMBS pools backed by first participations in previously uncertificated HECM loans. Tail HMBS issuances are HMBS pools consisting of subsequent participations. Tails are not from new loans, but they do represent new amounts lent. Tail HMBS issuance is essential for HMBS issuers to finance their

monthly advances, such as borrower draws and FHA mortgage insurance premiums. Last month’s tail pool issuances totaled $148 million, below the typical range.

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

Published by

Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.