For reverse mortgage lenders, the secondary market is a complex balancing act of liquidity, interest rates and government regulations.

The industry continues to grapple with challenges stemming from the Ginnie Mae HECM Mortgage-Backed Securities (HMBS) program’s 98% buyout requirement, a rule some say contributed to the 2022 bankruptcy of Reverse Mortgage Funding (RMF). With the highly anticipated HMBS 2.0 program currently stalled, lenders are increasingly relying on private-label securitizations to fund these mandatory buyouts, manage balance-sheet stress and launch proprietary products.  

“The demand for private-label proprietary securitizations is growing, and is as strong as it is for the asset-backed security details ⇒

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