Roughly one month ago, Ginnie Mae released a term sheet for a highly anticipated new development for the reverse mortgage industry: a new Home Equity Conversion Mortgage (HECM)-backed Securities (HMBS) product referred to as HMBS 2.0.

The new term sheet detailed several differences from the existing HMBS program, including a reduction in the HMBS pool size to 95% of the loan’s total unpaid principal balance (UPB). This is a move designed to “create an additional economic incentive to protect Ginnie Mae and taxpayers against a decline in collateral value,” Ginnie Mae explained when details ⇒

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