A recent Bank of America securitization that appears to be the first of its type raises the question of the value of investing in "scratch and dent" reverse mortgages, a specialized part of this government product-dominated market that a select investor base is said to have an appetite for.

"There's strong demand among a growing specialized group that has taken the time to figure out the cash-flow models and figure out how these bonds will perform," said Bob Yeary, chairman of reverse mortgage servicer and REO management company Reverse Mortgage Solutions, Spring, Texas.

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