Secondary Markets

At NRMLA's 2009 Annual Meeting & Expo, November 18-20, NRMLA is featuring a panel discussion on the state of the secondary market for reverse mortgages, featuring Craig Corn, of MetLife Bank, Mike McCully, of New View Advisors, David Fontanilla, of Knight Libertas, and Michael Nardacci, of Ginnie Mae.

The following published reports discuss the risks associated with securitizing reverse mortgages.

The U.S. Department of Housing and Urban Development published a final rule that adds the 1-month and 1-year London Interbank Offered Rate (“LIBOR”) as acceptable indices for calculating the interest rate on federally-insured reverse mortgages.

For 18 years, FHA’s Home Equity Conversion Mortgage was a financial rocket sitting on a launching pad without adequate fuel. Now, Ginnie Mae’s new HMBS is the fuel that will propel the program into the orbit of aging finance.

Let’s face it: You need capital to grow your reverse mortgage business. Unless you have wealthy friends and family, you need Wall Street, and Wall Street needs a hot industry, aka reverse mortgages.

In preparation for launching its HECM Mortgage-Backed Securities program in September, Ginnie Mae has published a 79-page reference guide for interested parties to learn the program rules and requirements.