Ginnie Mae is declaring its reverse mortgage securitizations off-limits for a new type of product that would require the servicer to take interest rate risk.

After May 31, the agency will no longer allow its pools to include fixed-rate Home Equity Conversion Mortgages that distribute some of their proceeds as a line of credit. Such loans have cropped up in response to rule changes at the Federal Housing Administration, which insures HECMs, the predominant reverse mortgage program.

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