Skip to main content

Interactive Data to provide independent evaluations for GNMA reverse MBS

Mar 25, 2010

Interactive Data Corporation, a provider of financial market data, analytics and related solutions, has announced that its Pricing and Reference Data business is now providing daily independent evaluations for fixed-rate reverse mortgage-backed securities (HMBS) issued under the Government National Mortgage Association (GNMA) Home Equity Conversion Mortgage (HECM) program. This program is designed to provide liquidity to reverse mortgage lenders. Interactive Data is among the first data providers in the industry to offer daily evaluations for fixed rate GNMA HMBS. Reverse mortgages provide an alternative to traditional home equity loans for homeowners seeking to monetize the equity in their homes. As the baby-boomer generation enters retirement age, it is expected they will turn to the equity in their homes to provide supplemental cash flow during this time period of their lives. Origination volume in 2009 for GNMA HMBS was approximately $8.5 billion, up more than 600% from 2008. GNMA has indicated that it expects 25-30 percent growth in HECM originations. Despite these increases, holders of GNMA HMBS have been challenged to find independent evaluations for these securities. Holders that may have previously relied on broker quotes or information from a dealer to assess current market value can now realize the benefits of subscribing to independent evaluations of fixed rate GNMA HMBS as an input to their valuations process. "GNMA HMBS have undergone dramatic growth over the past few years, and we find that many of our clients--especially insurance companies, mutual funds, and custodian banks--are increasingly requesting evaluations for these structures," said Liz Duggan, managing director, evaluations for Interactive Data Pricing and Reference Data. "Our clients can now subscribe to our independent evaluations for fixed rate GNMA HMBS as an input to their valuations process." For more information, visit www.interactivedata.com.  
About the author
Published
Mar 25, 2010
Fed Rate Could Be Down To 4.6% By Year's End

Inflation must hit its 2% goal for Fed to reduce rates.

New Compliance Requirements Add Challenges

Latest changes arrive at an already disruptive time in the mortgage industry

Changes Coming For Investment Properties

Using leases to qualify will require Proof

FCC Adopts New Rules To Close The 'Lead Generator Loophole'

Mortgage lead providers respond, saying this will "wipe out" several small and mid-tier businesses

Trade Associations & Lenders Stand Behind Trigger Leads Bill

Major trade associations like The MBA, NAMB, and BAC, urge action on S. 3502.

Supply And Demand Are Still Alive And Well

Treasury auctions may face weaker demand but they’re still getting done