Securities backed by reverse mortgages could perform better if recent reforms cut the number of defaults, but amassing loans for securitization is taking longer.

Issuance of bonds backed by Home Equity Conversion Mortgages fell to a five-year low of roughly $494 million in February, according to a report by New View Advisors LLC, a consulting firm in New York that specializes in reverse mortgage capital markets. This was the lowest issuance since May 2009 and down from $695 million in February 2013.

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