Many real estate experts in the months leading up to the launch were expecting this. But the final term sheet for HMBS 2.0 came about two months before Trump’s inauguration, and the release of the term sheet may not constitute a “final rule” under the provisions of the executive order, according to the housing policy official’s understanding.
HousingWireReverse Mortgage Daily (RMD) reached out to relevant trade groups about a possible timeline. I Mortgage Bankers Association (MBA) remains committed to seeing the implementation of HMBS 2.0, according to Pete Mills, MBA’s senior vice president of housing policy and strategic industry engagement.
“The MBA supports moving forward with the implementation of HMBS 2.0,” Mills told RMD. “It is consistent with the goal of reducing long-term costs, supports the high demand, increased capital in the HMBS market, and will help manage the risks associated with the HECM program.”
But regardless of the size of the order itself, some expected that any remaining policy could influence political change. Steve Irwin, president of National Reverse Mortgage Lenders Association (NRMLA), said the organization is continuing its work to ensure that HMBS 2.0 crosses the finish line.
“I would expect that there would be a freeze on any proposed rulemaking that might still be going on, as well as the introduction of any new legislation,” Irwin told RMD. “This type of legislation is a sign of a change in governance. I am working with the executive committee of NRMLA to further analyze the impact of this announcement.”
But Ginnie Mae itself has been silent on the topic of new HMBS 2.0 developments since the release of the term sheet. RMD has reached out multiple times to HUD and Ginnie Mae officials about a potential timeline for the program, but a HUD spokeswoman said the state-owned company has no timeline to share at this time.
In the company’s financial report for the 2024 fiscal year, Ginnie Mae discussed the expansion plan several times as evidence of the work the company is doing to improve liquidity and market participation.
The company said it is committed to “maintaining an effective HMBS program that meets the needs of America’s aging population,” the December report said, and will continue to work with its partners and industry stakeholders to facilitate financing.
“We believe that the approach we are on, in collaboration with industry stakeholders, will play an important role in developing the HMBS program,” the report explains. “The proposed changes will provide issuers with better access to liquidity and lead to a stronger HMBS market.”
But the report was also made under the Biden administration, and other housing measures under the Trump administration may be “on hold” until the nominee for HUD secretary, Scott Turner, is in place.
Turner cleared the seat hurdle Thursday, when his nomination came off the list The Senate Committee on Banking, Housing and Urban Affairs by party vote. His nomination now goes to the full Senate, and political analysts seem to be in broad agreement that he is likely to be confirmed.
Once that happens, other key decision makers — including Julia Gordon’s successor as FHA commissioner, and a potential new president Ginnie Mae — are likely to be appointed.
On Thursday, the MBA called for Turner’s immediate confirmation, saying his confirmation is “an important step in building his core staff and installing leadership [FHA] and Ginnie Mae.” NRMLA had earlier signed an earlier letter to Congress leaders urging immediate action on Turner’s nomination.
Source link
