Ginnie Mae Ramps Up Securitization of Reverse Mortgages
An emerging area of the secondary market appears to be gaining steam, even as a large part of the private-party securitization market remains in the deep freeze. That emerging area? Reverse mortgages, of course.
Ginnie Mae said Friday that Financial Freedom, the reverse mortgage lending subsidiary of IndyMac Bancorp Inc., has issued two fixed rate reverse mortgage transactions and one LIBOR transaction under Ginnie Mae’s Home Equity Conversion Mortgage Mortgage-Backed Securities, or HMBS, program. The $177 million fixed rate issuances and the $104 million LIBOR issuance are among the first MBS pools backed by FHA-insured fixed rate and LIBOR reverse mortgages.
The three pools pushed the Ginnie Mae HMBS program to $648 million in issuance, the agency said in a press statement.
Post from: Reverse Mortgage Loan Blog
