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Firm joins Ginnie Mae program.

The Government National Mortgage Association (Ginnie Mac) announced that Financial Freedom, a subsidiary of IndyMac Bank, F.S.B and a leading reverse mortgage lender, is a new issuer under Ginnie Mac's Home Equity Conversion Mortgage (HECM) Mortgage-Backed Securities (HMBS) program.

"We are pleased to welcome one of the top reverse mortgage lenders to our HMBS program," said Thomas R. Weakland, Acting Executive Vice President of Ginnie Mac. "Their inclusion as an issuer will greatly enhance the growth of our program. Creating a reverse mortgage securitization product that is attractive to top reverse mortgage lenders was our primary goal when we developed the security."

The Ginnie Mac HMBS provides the mortgage-backed securities marketplace with the only full faith and credit vehicle and the only standardized structure for the securitization of FHA-insured reverse mortgages. 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. The HMBS allows issuers to securitize the initial loan draw, subsequent loan draws, the mortgage insurance premium, servicing and guarantee fees, and receive market pricing on the entire loan amount. Issuers only need to pass through payments to investors as homeowners pay off the loan. Before the HMBS, reverse mortgage lenders only received a premium on the initial loan draw, and investors reimbursed the lender on subsequent loan draws, dollar for dollar.

"Ginnie Mae's full faith and credit backing of the HMBS, coupled with a standardized securitization structure, will expand our ability to provide consumers with safe, reliable reverse mortgage products," said Michelle Minier, CEO of Financial Freedom.
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Title Annotation:FINANCE
Publication:Real Estate Weekly
Date:Apr 2, 2008
Words:265
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