Ginnie Mae is exploring a new securitization option that would allow HECMs with balances above 98 percent of FHA’s Maximum Claim Amount to be pooled into securities.
Yes, but: This new product will not change the requirements for the existing HECM Mortgage-Backed Securities (HMBS) program, where loans with balances at or above 98 percent MCA are required to be bought out of HMBS.
- “Ginnie Mae remains committed to the HMBS program, which supports an important tool that enables seniors to tap into their home equity,” said Ginnie Mae President Alanna McCargo.
- “This potential product exploration reflects our focus on current liquidity issues affecting the secondary mortgage market. Given the growing population of older Americans that may need to rely on home equity for financial support, continued efforts to provide stability in the secondary market are crucial to the ongoing health and access to the FHA HECM product.”
