Secondary Market Gains Strength As Top Performers Pave the Way
The secondary market for Home Equity Conversion Mortgages is stabilizing according to a recent report. With the added stability comes successful numbers from the top performers in the sector.
"Among HMBS issued in 2016, Ocwen has led the way so far this year with a CPR of 8.00. But during the fourth quarter of 2017, the leader among that group was American Advisors Group with a rate of 8.61," according to Reverse Mortgage Daily.
"Similarly, Ocwen led the pack for 2015-vintage loans in the fourth quarter of 2017 with a prepay rate of 16.80; during the first half of 2018, leader Live Well Financial saw a CPR of 10.70."
According to reverse mortgage experts like Dan Ribler founder of Baseline Reverse, slow prepay speeds are excellent for the industry and for issuers.
“The most exciting takeaway from this is that speeds in total have been slower in [the first half of] 2018 than they were in Q4 2017,” said Ribler, according to RMD.
To learn more about the top performers in the secondary market and the positive numbers for 2018, click on the image above.
