HECM MBS

New Ginnie Mae Mortgage-Backed Security Could Help Lower Costs of Reverse Mortgages for Older Americans

 

Washington, DC – Ginnie Mae today announced it is creating a Home Equity Conversion Mortgage Mortgage-Backed Security (HECM MBS). The HECM MBS will allow approved issuers to securitize and sell their Federal Housing Administration (FHA) insured home equity conversion mortgage loans in the form of a Ginnie Mae MBS. HECMs are commonly referred to as reverse mortgages, and are designed to allow older homeowners to convert the equity in their homes to monthly streams of income or lines of credit.