Ginnie Mae has announced a term sheet for its proposed Home Equity Conversion Mortgage (HECM) Mortgage-Backed Securities (HMBS) 2.0 program, initiating a comment period ending July 31st. The proposed program aims to enhance liquidity access for HMBS Issuers by allowing the re-pooling of active and non-active buyouts into new custom, single-Issuer pools.
“The team at Ginnie Mae works hard to promote stability and growth for our markets, communities, and families alike.” said HUD Acting Secretary Adrianne Todman.
“It is critical that we enhance our existing tools so we can better support seniors and the reverse mortgage industry. We look forward to receiving feedback on how best to do this.”
“Soliciting public comment on the structure of the HMBS 2.0 program is critical to developing a program that supports Issuer liquidity while protecting taxpayers,” added Ginnie Mae Acting President Sam Valverde.
“Ginnie Mae remains committed to supporting the government reverse mortgage market and we will work swiftly to address input received as we work to implement the program.”
The new HMBS 2.0 program seeks to address liquidity constraints in the reverse mortgage sector by providing a new capital markets execution for older vintage HECMs.
