Ginnie Mae published a draft term-sheet for its proposed HECM Mortgage-Backed Securities (HMBS) 2.0 program. Comments are due July 31.
Why it matters: HMBS 2.0 seeks to address liquidity constraints in the reverse mortgage sector by providing a new capital markets execution for older vintage HECMs.
What’s next: NRMLA will convene the HMBS Issuers Committee to review the draft term sheet and craft comments.
What they’re saying: “Soliciting public comment on the structure of HMBS 2.0 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.”
