WASHINGTON, D.C.— Today, Ginnie Mae 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,” said 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, described in more depth in our blog Ginnie Mae Announces New Pool Type to Improve HECM MBS Liquidity, seeks to address liquidity constraints in the reverse mortgage sector by providing a new capital markets execution for older vintage HECMs.
Effective today, Ginnie Mae is establishing a comment period for Issuers and other industry participants to provide feedback on the HMBS 2.0 term sheet. Comments, attachments, and supporting materials are subject to public disclosure without change. Proprietary or sensitive personal information should not be included as comments will not be edited to remove such information. Please submit all comments to GinnieMaeHMBS@hud.gov before the close of business on July 31, 2024.
Additional information about Ginnie Mae is available at www.ginniemae.gov and on X (formerly Twitter), YouTube, Facebook, and LinkedIn.
About Ginnie Mae
Ginnie Mae is a wholly owned government corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of homeowners throughout the country. Ginnie Mae MBS programs directly support housing finance programs administered by the Federal Housing Administration, the Department of Veterans Affairs, the Department of Housing and Urban Development’s Office of Public and Indian Housing and the Department of Agriculture Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the U.S. Government.