Starting April 1, HMBS issuers must document Eligible Non-Borrowing Spouses and property charge set-asides at the time of pooling, according to All Participants Memorandum 15-01.
HMBS issuers sold $6.6 billion in new pools during 2014, down 31% from 2013. 2014 was the lowest full year of issuance since 2008, when HMBS was a fledgling program that had yet to be adopted by most market participants.
HREMIC issuance ended 2014 at $5.05 billion, with 25 transactions underwritten by 5 different sponsors.
The reverse mortgage capital markets experienced another important milestone as Structured Asset Securities Corporation Reverse Mortgage Loan Trust Series 1999-RM1 became the second securitization trust of such loans to pay off completely.
Ginnie Mae reminds Issuers that they must purchase HECM loans out of HMBS loan pools when the outstanding principal balance reaches or exceeds 98% of the maximum claim amount.
Effective immediately, Ginnie Mae is increasing the base net worth requirement for HECM Mortgage-Backed Securities (HMBS) issuers from the current $1 million base net worth requirement to $5 million.