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Baseline's Daily Reverse Mortgage Index Designed to Track Rates, Spreads

Baseline Reverse is introducing a new way to to track rates and spreads thanks to a daily HECM index that was recently launched.

"Specifically, the index reflects 'real-time HECM mortgage-backed securities (bond pricing) for a basket of 2017 PLF Annual LIBOR loans,' according to the company’s website," as reported by Reverse Mortgage Daily.

"Baseline Reverse founder Dan Ribler told RMD that the St. Johns, Fla.-based firm keeps the makeup of the basket constant to develop a “clear reflection of the rate curve and spread changes."

The company aims to make it easier to track numbers in the reverse market. According to Ribler, the previous system was comparable to a game of telephone. Now, with the new system there is much more efficiency involved.

“We update forward rate curves throughout the day and run cashflows at loan level to return bond and reverse mortgage servicing rights pricing,” according to Baseline's website.

“The HECM Index level includes only the bond levels.”

To learn more about Baseline's new tracking system for HECM bond prices, click on the image above.

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