Following HUD's decision to boost the reverse-mortgage market in March by having the FHA insure the product in Texas for the first time and changing the permitted origination fees (see MBSL 3/20/00), last week Fannie Mae gave the market another push by announcing that it would purchase Fannie Mae Home Keeper and FHA-insured home equity conversion mortgages (HECMs) from the state, effective immediately.

Although it has taken many years, it now appears that senior citizens in the state of Texas will finally have access to reverse mortgages. As the volume of loan origination in the reverse market is not that great right now, this development could eventually lead to a pick-up in the rate of that rarest or rare occurrences -reverse-mortgage securitizations.

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