Ginnie Mae set a record in its issuance of MBS backed by reverse mortgages in August.
Overall, the agency saw a 3% decline in total issuance between July and August. More reverse mortgage lenders are turning to Ginnie Mae as their secondary market outlet since Fannie Mae, the biggest investor on Federal Housing Administration-insured Home Equity Conversion Mortgages, hiked its margins in March by 50 to 75 basis points.
Issuance of Ginnie Mae securities backed by HECMs hit a record $1.9 billion in August, up from $853 million in July and $580 million in June. Ginnie Mae issued a total of $44.7 billion in MBS in August, down from a record $46.2 billion set in July.
Nevertheless, Ginnie Mae issuance has exceeded $43 billion for the past three months.