Ginnie Mae president Robert Couch says his agency is on track to securitize its first pool of Federal Housing Administration-insured reverse mortgages in September."We think it is going to improve pricing for consumers and help originators find an efficient secondary-market execution," Mr. Couch told a Mortgage Bankers Association government housing finance conference. The Ginnie Mae home equity conversion mortgage structure will allow reverse mortgage lenders to securitize lump-sum payouts as well as monthly draws in pools as small as $1 million. Once there is significant volume, Wall Street dealers will be able to aggregate the HECM mortgage-backed securities into real estate mortgage investment conduits. "It is a fairly simply structure for investors," Mr. Couch said in an interview. The complexity comes with the servicing, because one reverse mortgage could have participations in multiple securities. "Ginnie has one servicer ready for the September rollout, and we've got others that may be ready," the Ginnie president said. Mr. Couch is in line to be the new general counsel for the Department of Housing and Urban Development. If confirmed by the Senate, he will give up his post at Ginnie Mae.

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