Here are the top 10 reverse mortgage securities issuers for 2023

Key Takeaways:

– The top 10 HMBS issuers in 2023 included FAR, Longbridge, PHH Mortgage, Mutual of Omaha, TMAC/Goodlife, Guild Mortgage, MAM, Plaza, Sun West, and Money House.
– Finance of America Reverse (FAR) was the top issuer, with nearly 37% of total market share.
– American Advisors Group (AAG) was acquired by FAR’s parent company, resulting in FAR absorbing AAG’s issuance and maintaining the No. 1 position.
– Reverse Mortgage Funding (RMF) was absent from the list due to its HMBS portfolio being seized by Ginnie Mae.
– Total HMBS issuance in 2023 reached $6.485 billion, less than half of the all-time record in 2022.
– The top four issuers accounted for approximately 90% of all HMBS issuance in 2023.
– Ginnie Mae is exploring the introduction of a new HMBS product alongside its existing program.
– HECM volume and HMBS issuance are expected to remain similar in January, but could increase if the rate environment becomes more favorable and origination volume picks up.
– The increased maximum claim amount for 2024 should also help increase volume.

HousingWire:

Despite looking a bit different at the end of 2023, there were a lot of similarities in the full-year Home Equity Conversion Mortgage (HECM)-backed securities (HMBS) issuance tables when compared to recent years. One thing that is much different compared to 2022, however, is total issuance.

Here are the top 10 HMBS issuers in 2023 as tabulated by New View Advisors, based on publicly available Ginnie Mae data and private sources the firm has access to.

Rank Company in 2023 Market share Company in 2022 Rank Change
1 FAR 36.9% AAG Hold*
2 Longbridge 21.5% FAR Longbridge +1
3 PHH Mortgage 16.3% Longbridge PHH +2
4 Mutual of Omaha 14.9% RMF Omaha +2
5 TMAC/Goodlife 2.8% PHH Mortgage TMAC +2
6 Guild Mortgage 2.7% Mutual of Omaha Guild +4**
7 MAM 2.6% TMAC/Goodlife MAM +1
8 Plaza 1.7% MAM Plaza +1
9 Sun West 0.5% Plaza Sun West +2
10 Money House 0.1% Cherry Creek Money House +3
*AAG was acquired by FAR parent FOA in 2023, leading FAR to absorb AAG HMBS issuance and resulting in a rank hold for FAR.
**Guild Mortgage acquired Cherry Creek Mortgage last year, also accounting for a consolidation of data.

Leading players

At the top of the list once again is Finance of America Reverse (FAR), which took nearly 37% of total market share in HMBS issuance last year. While American Advisors Group (AAG) was technically knocked off its perch atop the industry, AAG was acquired by FAR parent Finance of America Companies (FOA), which caused FAR to absorb AAG’s issuance and make this a technical hold on the No. 1 position.

A couple of players are also absent from this year’s list, with the most noteworthy omittance being Reverse Mortgage Funding. RMF saw its HMBS portfolio seized by Ginnie Mae in late 2022, and that portfolio remains one of the largest in the business. Under Ginnie Mae’s control, however, the portfolio has yet to issue any HMBS pools.

“About $301 million of Issuer 42’s portfolio paid off in November, but Issuer 42 still accounts for $18.3 billion, or about 31% of all outstanding HMBS,” New View Advisors said in December, referring to the former RMF portfolio’s designation. “Issuer 42 has not issued any tail pools; we estimate Issuer 42 now has well over a $1 billion uncertificated position, that is, the excess of the portfolio’s HECM asset balance over the balance of its HMBS liability.”

Total HMBS issuance

Ginnie Mae is currently determining its next steps in the HMBS marketplace, including a recent announcement that it will explore an entirely new HMBS product that would be introduced to the market alongside its existing HMBS program. Former Ginnie Mae President Ted Tozer made a similar recommendation last year and lauded the move in an interview with RMD.

From its leading position, FAR issued $2.39 billion for a 36.9% market share, followed by the $1.39 billion issued by Longbridge for a 21.5% market share. Overall, HMBS issuance in 2023 reached $6.485 billion, less than half of the all-time issuance record of $14 billion in 2022.

The top four issuers accounted for roughly 90% of all HMBS issuance in 2023, New View reported.

Looking ahead

While both HECM volume and HMBS issuance ended 2023 on something of a low note, there is not a lot of difference expected from issuance levels in January’s data, which will likely become available late this week.

“December production reflects applications and originations from 2-3 months prior when the expected rate was at or near its highs,” Michael McCully, partner at New View Advisors, said earlier this month. “We don’t expect January to be much different.”

But if the rate environment becomes more favorable and origination volume picks up on the back of a new HECM limit, that could change.

“Expect origination volume to increase if the 10-year treasury stays below 4% and home values remain stable,” McCully said. “The increased maximum claim amount [i.e., the HECM limit] for 2024 should help volume, too.”

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Property Chomp’s Take:

is a commonly used HTML element that is used to create a division or section within a webpage. It is a versatile element that allows developers to organize and structure their content in a more meaningful way. With the use of CSS styling,

elements can be customized to have different sizes, colors, and positions on the page.

In the world of Home Equity Conversion Mortgage (HECM)-backed securities (HMBS) issuance, the year 2023 saw some changes compared to previous years, but also maintained some similarities. One notable difference was the total issuance of HMBS.

According to New View Advisors, a financial consulting firm that specializes in the HMBS market, the top 10 HMBS issuers in 2023 were as follows:

1. FAR – 36.9% market share
2. Longbridge – 21.5% market share
3. PHH Mortgage – 16.3% market share
4. Mutual of Omaha – 14.9% market share
5. TMAC/Goodlife – 2.8% market share
6. Guild Mortgage – 2.7% market share
7. MAM – 2.6% market share
8. Plaza – 1.7% market share
9. Sun West – 0.5% market share
10. Money House – 0.1% market share

FAR, which is short for Finance of America Reverse, maintained its position as the top issuer with a market share of nearly 37%. However, it is worth noting that FAR acquired American Advisors Group (AAG) in 2023, resulting in FAR absorbing AAG’s HMBS issuance and holding its rank.

On the other hand, Reverse Mortgage Funding (RMF) was absent from the list due to Ginnie Mae seizing its HMBS portfolio in late 2022. Despite being one of the largest portfolios in the business, Ginnie Mae has yet to issue any HMBS pools from RMF’s portfolio.

In terms of total HMBS issuance in 2023, the market reached $6.485 billion, which is less than half of the all-time record set in 2022 at $14 billion. The top four issuers accounted for approximately 90% of the total HMBS issuance.

Looking ahead, it is expected that the issuance levels in January will not differ significantly from December’s data. However, if the rate environment becomes more favorable and origination volume increases due to a new HECM limit, it could potentially change the landscape.

In conclusion,

is a fundamental HTML element that allows developers to structure and organize their web content effectively. In the context of HMBS issuance, the top issuers in 2023 remained consistent with some notable changes. The total issuance for the year decreased compared to the previous year, but there is potential for growth in the future depending on market conditions and regulatory changes.

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