HMBS issuers continued their torrid pace to start the New Year. January saw nearly $1.4 billion in new HMBS, setting a record for new original loan pools for the fourth month in row. Refinancing activity continued to be strong.
January’s production of original new loan pools was a record $1.18 billion, edging December’s $1.14 billion, November’s $1.08 billion and October’s $1.07 billion. Approximately $552 million in original new loan pools were issued in January 2021.
A new issuer has appeared: Mortgage Assets Management, LLC (“MAM”), replacing Reverse Mortgage Solutions, from whom MAM acquired HMBS assets last year. MAM issued 3 tail pools in January.
91 pools were issued in December: 55 first-participation or original pools, and 36 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 $185 million, within 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.)