Ginnie Touts New Issuer in Reverse Program

Ginnie Mae has announced that Financial Freedom, a leading reverse mortgage lender and a subsidiary of IndyMac Bank FSB, has joined Ginnie Mae's Home Equity Conversion Mortgage Mortgage-Backed Securities program as an issuer. The HMBS program provides the only full-faith-and-credit vehicle and the only standardized structure for the securitization of Federal Housing Administration-insured reverse mortgages, according to Ginnie Mae. The HMBS, an accrual coupon pass-through bond, "simplifies the current structure of reverse mortgage securitizations and maximizes value for reverse mortgage lenders and borrowers," Ginnie said. The program allows issuers to securitize initial and subsequent loan draws, mortgage insurance premiums, and servicing and guarantee fees and to receive market pricing on the entire loan amount. Ginnie Mae, a government-owned corporation within the Department of Housing and Urban Development, can be found online at http://www.ginniemae.gov.