HMBS issuance rises to $563M in January as endorsements lag

"Original, or first-participation, HMBS production totaled $382 million in January, $90 million more than December's $292 million and $49 million above November's $333 million, but $24 million below January 2025. Tail issuance totaled $179 million, down from $189 million in December. The 72 pools included 23 original pools, 46 tail pools, and three mixed pools. January also saw 21 pools with aggregate sizes under $1 million, totaling $12.1 million in unpaid principal balance (UPB), enabled by a Ginnie Mae rule allowing small pools."

"Participations from the same loan were pooled more than once, totaling $60.2 million, including $6.7 million in first participations. While HMBS issuance showed gains, HECM loan endorsements were mixed. Reverse Mortgage Insight reported endorsements rose 5% from December to 2,295 loans, but this was 13.1% below January 2025. Regionally, only two of ten regions, Great Plains (+42.1%) and Mid-Atlantic (+14.3%), were up from a year ago, though six regions increased from December."

"The Pacific/Hawaii region rose 20.1% to 550 loans, Northwest/Alaska jumped 21.5% to 198 loans, and the Mid-Atlantic added 16.5% to 184 loans. Among the top 10 lenders, seven posted gains from December, including Guild Mortgage (+165.9% to 109 loans), Hightech Lending (+72.7% to 38 loans), and Goodlife/TMAC (+59.3% to 137 loans). Only four of the top 10 lenders exceeded their totals from January 2025."

HMBS original production reached $382 million in January, up from December and November but down $24 million from January 2025. Tail issuance was $179 million, and the 72 pools comprised 23 original, 46 tail, and three mixed pools. Twenty-one pools under $1 million totaled $12.1 million UPB, enabled by a Ginnie Mae rule permitting small pools. Participations from the same loan were pooled multiple times, totaling $60.2 million, including $6.7 million in first participations. HECM endorsements rose 5% from December to 2,295 loans but were 13.1% below year-ago levels, with mixed regional and lender performance. Data sources included Ginnie Mae records and industry compilations, and commentary noted limits in publicly available reverse-mortgage metrics.

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