Archive for the ‘HMBS’ Category

HMBS September 2021 Part II: Big Summer Concludes

Wednesday, October 13th, 2021

Outstanding HMBS rose to a record $56.7 billion in September 2021, as high levels of both issuance and HECM loan payoffs continued. HMBS payoffs once again exceeded $1 billion, for the seventh month in a row. Outstanding HMBS increased by about $106 million. These big numbers reflect continued high levels of refinancing, as low rates and high home prices allow more homeowners to borrow new, larger HECM loans.

In 2019, HMBS posted its lowest annual issuance total in five years, but 2020’s low interest rates and higher lending limits boosted production to a near-record $10.6 billion. As mentioned in previous blogs, for the first nine months of 2021, HMBS new issuance already exceeds $9 billion, on pace to set a new annual volume record.

Our friends at Recursion broke down the prepayment numbers further: last month’s 98% MCA mandatory purchases totaled $238 million, only 19.8% of the total.

New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.

2021Q3 HMBS Issuer League Tables – Annual Volume Record in the Crosshairs

Friday, October 1st, 2021

AAG continued its #1 HMBS issuer ranking for the first nine months of 2021 with $2.585 billion of issuance and 28% market share. FAR stayed close behind in second with $1.985 billion issued and 21.4% market share. Longbridge eked past RMF to third with $1.530 billion issued and 16.5% market share. RMF at fourth had $1.506 billion issued with a 16.2% market share. PHH Mortgage again rounded out the Top Five, with $1.120 billion and a 12% market share. These five issuers continue to account for 94% of all HMBS issuance, consistent with past performance. There are 14 active HMBS issuers year to date, though Mutual of Omaha and The Money House did not issue in the third quarter.

2021Q3 saw $3.45 billion of HMBS issued, up 9% from last quarter’s $3.16 billion and the third consecutive quarterly issuance record. With three months to go, the industry is on track to exceed $12 billion of HMBS issuance in 2021.

New View Advisors compiled these rankings from publicly available Ginnie Mae data as well as private sources.

HMBS September 2021: Try to Remember This Kind of September

Friday, October 1st, 2021

HMBS issuers posted record totals in September, with the highest monthly issuance volume this year, and another record for new loan pools. They issued just over $1.2 billion in new HMBS, as refinancing activity continued to be strong. 107 pools were issued in September, including 47 first-participation CMT pools. Before January 2021 no new first-participation CMT pools had been issued for many years.

The all-time HMBS annual volume year is 2010, with $10.8 billion issued. That was when Principal Limits were high and no borrower financial assessment safeguards had been established. That record will fall this year, as nearly $9.3 billion was issued in the first nine months.

September’s production of original new loan pools was a record $1.03 billion, easily surpassing August’s $880 million, July’s previous-record $937 million, June’s $823 million, May’s $862 million, April’s $900 million, March’s $671 million, February’s $693 million, and January’s $552 million. Approximately $693 million in original new loan pools were issued in September 2020.

September issuance divided into 60 first-participation or original pools, and 47 tail pools. Original pools are those HMBS pools backed by first participations in previously uncertificated HECM loans. Tail HMBS issuances are HMBS pools consisting of subsequent participations. Tails are not from new loans, but they do represent new amounts lent. Tail HMBS issuance is essential for HMBS issuers to finance their monthly advances, such as borrower draws and FHA mortgage insurance premiums. Last month’s tail pool issuances totaled $189 million, within the typical range.

New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.

HMBS August 2021 Part II: Big Summer Continues

Monday, September 13th, 2021

Outstanding HMBS rose to a record $56.6 billion in August 2021, as high levels of both issuance and HECM loan payoffs continued. HMBS payoffs once again exceeded $1 billion. Outstanding HMBS rose by about $37 million. These big numbers reflect continued high levels of refinancing, as low rates and high home prices allow more senior homeowners to borrow new, larger HECM loans.

In 2019, HMBS posted its lowest annual issuance total in five years. But in 2020 low interest rates and a higher lending limit boosted production significantly to a near-record $10.6 billion. After eight months in 2021, HMBS new issuance already exceeds $8 billion.

Our friends at Recursion broke down the prepayment numbers further: last month’s 98% MCA mandatory purchases totaled $213 million, only 18.7% of the total.

New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.

HMBS August 2021: Endless Summer of Big Issuance

Wednesday, September 1st, 2021

HMBS issuers posted strong totals in August, with issuance volume strikingly similar to July. There was just under $1.1 billion in new HMBS, as refinancing activity continued to be strong. 107 pools were issued in August, including 42 first-participation CMT pools. Before January 2021 no new first-participation CMT pools had been issued for many years.

The all-time HMBS annual volume year is 2010 with $10.8 billion issued, when Principal Limits were high and no borrower financial assessment safeguards had been established. That record will likely fall in 2021, as over $8 billion has been issued in the first eight months.

August’s production of original new loan pools was $880 million, compared to July’s record $937 million, June’s $823 million, May’s $862 million, April’s $900 million, March’s $671 million, February’s $693 million, January’s $552 million, and December’s $878 million. Approximately $666 million in original new loan pools were issued in August 2020, and only $390 million in August 2019.

August issuance divided into 57 first-participation or original pools, and 50 tail pools. Original pools are those HMBS pools backed by first participations in previously uncertificated HECM loans. Tail HMBS issuances are HMBS pools consisting of subsequent participations. Tails are not from new loans, but they do represent new amounts lent. Tail HMBS issuance is essential for HMBS issuers to finance their monthly advances, such as borrower draws and FHA mortgage insurance premiums. Last month’s tail pool issuances totaled $210 million, within the typical range.

New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.

HMBS July 2021 Part II: Summer of Big Numbers Continues

Tuesday, August 10th, 2021

Outstanding HMBS rose to a record $56.6 billion in July 2021, as high levels of both issuance and HECM loan payoffs continued. HMBS payoffs once again exceeded $1.1 billion. Outstanding HMBS rose by about $90 million. These big numbers reflect continued high levels of refinancing, as low rates and high home prices allow more homeowners to borrow new, larger HECM loans.

In 2019, HMBS posted its lowest annual issuance total in five years. But in 2020, low interest rates and a higher lending limit boosted production significantly to a near-record $10.6 billion. After seven months, HMBS new issuance already totals almost $7 billion, on pace to exceed $11 billion in 2021.

Our friends at Recursion broke down the prepayment numbers further: last month’s 98% MCA mandatory purchases totaled $222 million, only 19.6% of total payoffs.

New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.

HMBS July 2021: Long Hot Summer

Monday, August 2nd, 2021

HMBS issuers posted another strong month in July with just over $1.1 billion in new issuance, as refinancing activity continued to be strong.  106 pools were issued in July, including 43 first-participation CMT pools.  Before January 2021 no new first-participation CMT pools had been issued for many years.

The all-time HMBS annual volume year is 2010, with $10.8 billion issued.  That was when Principal Limits were high and no borrower financial assessment safeguards had been established.  That record may fall this year, as over $7 billion was issued in the first seven months, but it remains to be seen how long the refinancing boom can continue.

July’s production of original new loan pools was a record $937 million, compared to June’s $823 million, May’s $862 million, April’s previous record $900 million, March’s $671 million, February’s $693 million, January’s $552 million, December’s $878 million, and November’s $765 million.  Approximately $691 million in original new loan pools were issued in July 2020.

July issuance divided into 53 first-participation or original pools, and 53 tail pools.  Original pools are those HMBS pools backed by first participations in previously uncertificated HECM loans.  Tail HMBS issuances are HMBS pools consisting of subsequent participations.  Tails are not from new loans, but they do represent new amounts lent.  Tail HMBS issuance is essential for HMBS issuers to finance their monthly advances, such as borrower draws and FHA mortgage insurance premiums.  Last month’s tail pool issuances totaled $203 million, within the typical range.

New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.

HMBS June 2021 Part II: Refi Wave Rolls On

Friday, July 16th, 2021

Outstanding HMBS fell to just under $56.5 billion in June, as record HECM loan payoffs outpaced issuance. HMBS payoffs exceeded $1.1 billion, a dollar amount surpassed only by the assignment wave of 2018. For voluntary payments, including refinancings, June 2021 was a record month. Outstanding HMBS fell by about $50 million. The big payoff reflects continued high levels of refinancing, as low rates and high home prices allow more homeowners to borrow new, larger HECM loans.

February was the last month in which GNMA allowed issuance of HMBS pools backed by first participations of LIBOR-indexed loans. For the time being, the Treasury CMT index replaces LIBOR as the base index for newly originated adjustable-rate HECM loans.

For 2019, HMBS posted its lowest annual issuance total in five years. In 2020, low interest rates and a higher lending limit boosted production significantly to a near-record $10.6 billion. At the halfway mark in 2021, HMBS issuance totals $5.8 billion, on pace to exceed $11 billion.

Our friends at Recursion broke down the prepayment numbers further: last month’s 98% MCA mandatory purchases totaled $220 million, just 19.1% of the total.

New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.

2021Q2 HMBS Issuer League Tables – “Top Five” Still Account for 94%

Thursday, July 1st, 2021

AAG continued its #1 HMBS issuer dominance for the first six months of 2021 with $1.576 billion of issuance and 27% market share. FAR stayed firmly in second with $1.256 billion issued and 21.5% market share. RMF moved up a notch to third with $997 million issued and 17.1% market share, and Longbridge was fourth with $991 million issued and 17% market share. PHH Mortgage again rounded out the Top Five, with $667 million and a 11.4% market share. These five issuers accounted for more than 94% of all HMBS issuance in the quarter, consistent with past performance. There were 14 active HMBS issuers in the first half of 2021, one more than last year, with Mutual of Omaha returning to market and issuing two pools in Q1.

2021Q2 saw $3.16 billion of HMBS issued, up 18% from last quarter’s $2.68 billion and itself a quarterly record. Doubling first half production would put the industry annual total at a record $11.7 billion, though higher interest rates and refinance burnout may challenge volume in the later months of 2021.

New View Advisors compiled these rankings from publicly available Ginnie Mae data as well as private sources.

HMBS June 2021: School’s Out – Will Refis Take a Vacation?

Thursday, July 1st, 2021

HMBS issuers posted another strong month in June 2021 with just over $1.0 billion in new issuance, as refinancing activity continued to be strong. 102 pools were issued in June, including 40 first-participation CMT pools. Before January 2021 no new first-participation CMT pools had been issued for many years.

$10.6 billion in HMBS was issued in 2020, easily beating 2019’s total of $8.3 billion and 2018’s $9.6 billion. 2010 remains the all-time HMBS volume year with $10.8 billion issued, when Principal Limits were high and no borrower financial assessment safeguards had been established. That record may fall this year, as nearly $6 billion was issued in the first half, but it remains to be seen how long the refinancing boom can continue.

June’s production of original new loan pools was $823 million, compared to May’s $862 million, April’s record $900 million, March’s $671 million, February’s $693 million, January’s $552 million, December’s previous record of $878 million, and November’s $765 million. Approximately $593 million in original new loan pools were issued in June 2020.

June issuance divided into 53 first-participation or original pools, and 49 tail pools. Original pools are those HMBS pools backed by first participations in previously uncertificated HECM loans. Tail HMBS issuances are HMBS pools consisting of subsequent participations. Tails are not from new loans, but they do represent new amounts lent. Tail HMBS issuance is essential for HMBS issuers to finance their monthly advances, such as borrower draws and FHA mortgage insurance premiums. Last month’s tail pool issuances totaled $196 million, within the typical range.

New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.