NAMB reaches agreement with Japanese counterpart

Ginnie Mae applauds the creation of Reverse Mortgage Market IndexMortgagePress.comReverse Mortgage Market Index Ginnie Mae has commended the National Reverse Mortgage Lenders Association (NRMLA) and the Hollister Group LLC for the release of its new NRMLA/Hollister Reverse Mortgage Market Index (RMMI). The RMMI is the first market indicator to collect critical market, housing and demographic data and to track and project the market for reverse mortgages. "The NRMLA/Hollister Group Reverse Mortgage Market Index is another major step in the evolution of a vibrant secondary market for reverse mortgages in the U.S.," said Atare E. Agbamu, CRMS, columnist for The Mortgage Press and founder of ThinkReverse LLC. The RMMI estimates that Americans age 62 or older currently hold an estimated $4.3 trillion of home equity—an amount that could increase past $37 trillion by the year 2030, assuming historical home appreciation levels. In the first quarter of 2007 alone, there was a $19 billion increase in senior home equity. "This kind of data is essential for developing an effective secondary market for reverse mortgages," said Michael J. Frenz, executive vice president of Ginnie Mae. "Demand for reverse mortgages is increasing; therefore, insight into the amount of home equity that is available to assist seniors with retirement funding is crucial." Ginnie Mae is preparing for the first issuances of its Home Equity Conversion Mortgage Mortgage-Backed Security (HMBS) later this year. The Ginnie Mae HMBS will be backed by Federal Housing Administration-insured HECM loans. Ginnie Mae's creation of a secondary market for HECM loans is expected to increase liquidity and lower costs for borrowers. For more information, visit www.ginniemae.gov or www.nrmla.org.