Lehman Brothers last week closed its second reverse mortgage transaction since 2002. Contrasting from its 2005 issue, the $598 million SASCO 2006RM1, incorporates a $25 million single-A tranche. At least five more deals are expected in the market from various issuers prior to yearend.

The deal, like Lehman's Reverse Mortgage Loan Trust Series 2005-RM1, is backed entirely with loans generated by reverse mortgage lender Financial Freedom Senior Funding Corp. Another reverse mortgage deal is expected to hit the market soon, along with four more by yearend, according to Vincent Barberio, a managing director in Fitch Ratings' RMBS group. "The inquiries haven't stopped. We are still getting them throughout the market," he said.

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