Ginnie Mae Announces Reduction to Minimum HMBS Pool Size

Ginnie Mae recently announced it was reducing the minimum HECM Mortgage Backed Security (HMBS) pool size for all HMBS pool types from $1,000,000 to $250,000.  The reduction, which is effective for issuances as of April 1, 2023, and thereafter, is intended to minimize the amount of time issuers must carry balances between loan disbursement and HMBS securitization.  Despite the reduction, each pool must still contain a minimum of three participants, each of which is related to a distinct HECM loan in accordance with the HUD Handbook 5500.3, Rev-1 (the Ginnie Mae Mortgage Backed Securities Guide).