Archive for the ‘HMBS’ Category

HMBS November 2021: Issuers Give Thanks for Record-Smashing Month

Wednesday, December 1st, 2021

HMBS issuers rewrote the records books in November, posting yet another $1.2 billion month and setting new HMBS records for both total annual issuance and monthly original loan pools. Refinancing activity continued to be strong. 96 pools were issued in November, including 52 first-participation CMT pools. Before January 2021 no new first-participation CMT pools had been issued for many years.

With November’s activity, HMBS issuance now stands at $11.7 billion for 2021, an all-time record. The previous all-time HMBS annual volume year was 2010, with $10.8 billion issued.

November’s production of original new loan pools was a record $1.08 billion, edging out October’s previous record $1.07 billion. Approximately $765 million in original new loan pools were issued in November 2020.

November issuance divided into 63 first-participation or original pools, and 33 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 $148 million, below the typical range.

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

HMBS October 2021 Part II: Record Issuance Drives HMBS Supply

Tuesday, November 9th, 2021

Outstanding HMBS rose to a record $56.8 billion in October 2021, as high levels of both issuance and HECM loan payoffs continued. HMBS payoffs exceeded $1 billion for the eighth month in a row. Outstanding HMBS rose by about $90 million. These big numbers, very similar to September’s totals, reflect continued high levels of refinancing. Low interest rates and high home values allow more senior homeowners to borrow larger HECM loans.

Despite sharply declining refinance volume in the forward mortgage market, HECMs refinancing remains strong. According to multiple sources, refinancing accounts for as much as one half of new originations.

In 2019, HMBS posted its lowest annual issuance total in five years. But in 2020, low interest rates, rising home prices, and a higher lending limit boosted production significantly, to a near-record $10.6 billion. In the first ten months of 2021, HMBS new issuance already exceeds $10.4 billion.
Our friends at Recursion broke down the prepayment numbers further: last month’s 98% MCA mandatory purchases totaled $238 million, less than 20% of the total.

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

HMBS October 2021: Will Refis Come Back to Haunt HMBS?

Monday, November 1st, 2021

HMBS issuance remained strong in October. HMBS issuers posted another $1.2 billion in total issuance volume and set another new record for new loan pools, tempered by yet another month of strong refinance activity. 102 pools were issued in October, including 50 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 in November, as nearly $10.5 billion was issued in the first ten months.

October’s production of original new loan pools was a record $1.07 billion, edging September’s previous record of $1.03 billion. Approximately $674 million in original new loan pools were issued in October 2020.

September issuance divided into 62 first-participation or original pools, and 40 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 $135 million, below the typical range.

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

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.