Ginnie Mae announced a new platinum securities channel for mortgage securities backed by Home Equity Conversion Mortgages.
"This option, 'eases the administrative costs of holding multiple (and typically smaller) HMBS securities and, in doing so, enhances the liquidity of the overall market for Ginnie Mae HMBS,' the announcement release reads," according to Reverse Mortgage Daily.
"This new option is the latest addition to a modernization initiative aimed at Ginnie Mae’s Platinum securities program, in place since 2017 to add functionality that is investor-focused."
The report stated that Platinum products have seen adoption rates strengthen since being introduced. In the fiscal year 2017 Platinum securities came in at $7.88 billion with fixed-rate collateral and grew to $20 billion after the introduction of the MyGinnieMae portal, according to the report.
"Making it simpler for investors to manage their portfolio of Ginnie Mae MBS and HMBS, while enhancing the liquidity of their Ginnie Mae investments, supports our mission to foster a strong secondary mortgage market for government mortgage loans," said John Daugherty, SVP of the office of securities operations in the press release, according to the report.
To learn more about the HMBS Platinum securitization channel from Ginnie Mae, click on the image above.