Ginnie Mae wants to give Fannie Mae some competition for FHA-insured reverse mortgages, and agency officials are looking at different structures to securitize these mortgages, which are designed to help cash-poor seniors stay in their homes.Designing a reverse mortgage securitization program is "very complicated," Ginnie President Rob Couch told a Federal Housing Administration lending conference. "We are working hard at it," he added. The National Real Estate Development Center sponsored the conference. The former Mortgage Bankers Association chairman noted that Ginnie's involvement in securitizing what the FHA calls home equity conversion mortgages would increase competition in a market where Fannie Mae is the largest investor. Fannie holds HECM loans in its investment portfolio. A HECM securitization program also could help Ginnie increase its share in the mortgage-backed securities market, which currently stands at 4%. Originations of FHA-insured home equity conversion mortgages are up 80% this year, and the product has "tremendous growth potential" over the next 20 to 40 years, Mr. Couch said. Ginnie Mae can be found online at http://www.ginniemae.gov.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry