Ginnie Mae is launching HMBS 2.0, a new program to improve liquidity in the reverse mortgage market following challenges from a significant lender's bankruptcy last year. The program aims to reduce HMBS pool sizes to 95% of the total unpaid principal balance and was announced in January 2024, with a finalized term sheet in November. However, the anticipated rollout may be jeopardized by substantial staff reductions at Ginnie Mae, which has experienced over 40% cutbacks. The organization, already working with a limited staff, oversees considerable mortgage-backed securities operations, raising concerns about its capacity to efficiently manage the new initiative.
"Ginnie Mae's HMBS 2.0 aims to boost liquidity in the reverse mortgage market after addressing challenges from a major lender's bankruptcy, but staffing cuts could impact rollout."
"The new program, announced in January 2024, reduces HMBS pool size to 95% of total unpaid principal balance, helping stabilize the secondary market for reverse mortgages."
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