About $996 million in new Home Equity Conversion Mortgage-backed security pools were created during August, a high for the year, according to a report by Reverse Mortgage Daily.
August’s HMBS issuance total was up 41% from July’s total of $704 million, and 36% higher than the $730 million reported for August of 2015, Reverse Mortgage Daily reported.
Production of original new loan pools fell slightly in August, but there were $321 million of original pools backed by seasoned HECMs, according to the report. The largest pool was backed by reverse loans that averaged over 10 years old.
Total outstanding HMBS rose to $54.7 billion, a $325 million increase from the previous month, Reverse Mortgage Daily noted.