A test prototype of the single-securitization platform for the secondary mortgage market is expected as early as next year, regulators said while speaking at the Mortgage Bankers Association’s Secondary Market Conference on Sunday.
This goal set forth by the Federal Housing Finance Agencyand the government-sponsored enterprises is to incorporate mortgage participants’ feedback into the prototype development, which will hopefully result into a platform creation that suits the industry’s needs, explained Tim Yanoti, senior vice president of securitization at Fannie Mae.
HousingWire Reporter Christina Mylinski has more on the securitization platform and will be covering the MBA Secondary Conference online Monday and Tuesday. You can follow Christina on Twitter: https://twitter.com/@ChristinaMlynskfor conference updates.
Of the almost 600,000 reverse mortgages outstanding, 9.8% are currently delinquent. This is an 8% increase from 2011, according to the U.S. Department of Housing and Urban Development.
The Wall Street Journal writes that delinquencies have increased in recent years as up to 70% of borrowers have opted for lump-sum payouts.
As concerns about defaults rise, the Federal Housing Agency recently discontinued a popular variety of fixed-rate reverse mortgages that paid the highest lump sums available through the program.