A small private-label 'scratch and dent' securitization backed by government reverse mortgages appears to be the first deal of this type, and could pave the way for more reverse MBS deals in the struggling private-label market.

Bob Yeary, chairman of reverse mortgage servicer and REO management company RMS, noted that the Bank of America securitization is also the first private-label reverse mortgage deal seen in the market since the downturn. It could signify that "the private securitization market is coming back, maybe starting the return of the HECM securitization process on a private basis," he said.

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