National Reverse Mortgage Lenders Association Eastern Regional Meeting 4/5/2016 All Data as of February 2016 1
HMBS Current State Metrics Portfolio – $53.8 Billion UPB 333,060 Loans 9.2M Participations Active Issuers – 16 HMBS Issuers with outstanding portfolios FY2016 YTD HMBS Issuance – FY 2015: $8.7 Billion = $726M/Month FY 2016 YTD: $4.1 Billion = $826M/Month HREMIC Issuance – FY 2015: $7.8 Billion = $650M/Month FY 2016 YTD: $4.6 Billion = $914M/Month 2
History of Issuances – Program View Participations of OPB ($M) (Millions) New Pools Issued $1,400 300,000 $1,200 250,000 $1,000 200,000 $800 150,000 $600 100,000 $400 50,000 $200 $0 0 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 First Draws Tail Draws Participations 3
$1,000 $1,200 $1,400 OPB ($M) $200 $400 $600 $800 $- Feb-14 Mar-14 Apr-14 Recent Issuances – Fixed vs. ARM May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 ARM Dec-14 Jan-15 Fixed Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 4 Feb-16
HECM/HMBS Portfolio Growth Total UPB ($M) Number of Participations $60,000 10,000,000 9,000,000 $50,000 8,000,000 7,000,000 $40,000 6,000,000 $30,000 5,000,000 4,000,000 $20,000 3,000,000 2,000,000 $10,000 1,000,000 $0 0 Portfolio UPB # Participations in Portfolio 5
HMBS Portfolio & Issuance Trends UPB ($M) 60,000 3% 7% 10% 50,000 21% Annual Net Portfolio Growth 28% 40,000 59% 30,000 195% 20,000 482% 10,000 0 HMBS UPB Net HMBS Issuance 6
Borrowers Age Profile and Payment Option of HECM Loans Over two-thirds of HECM borrowers are between 66 and 80 years Nearly nine-out-of-ten HECM old, while 3% of the borrowers were over 90, and several were over loans are line of credits. 100. 2% Number of Loans Percentage of Loans (%) 1% 100,000 35 2% 5% 3% 90,000 30 80,000 25 70,000 60,000 20 50,000 15 40,000 30,000 10 88% 20,000 5 10,000 0 0 Tenure Term Line of Credit Number of Loans Percentage of Total Modified Term Modified Tenure Lump Sum 7
HECM UPB as a Percentage of Maximum Claim Amount Over 45% of the HECM loans had UPBs greater than 75% of the Maximum Claim Amount, while 25% percent were below 50% as of February 2016. February 2014 February 2016 HECM UPB as a HECM Loan % of All HECM Loan % of All % of Maximum Count Loans Count Loans Claim Amount < 25% 16,419 5.64% 21,181 6.36% 25% - 50% 31,990 11.00% 60,912 18.29% 50% - 75% 124,745 42.88% 99,916 30.00% 75% - 85% 84,435 29.03% 76,044 22.83% 85% - 95% 29,596 10.17% 64,340 19.32% 95% - 98% 3,690 1.27% 10,662 3.20% Total 290,887 100.00% 333,060 100.00% Note: Bottom cutoffs of the stratum are inclusive. For example, 75% - 85% means >= 75% and < 85% 8
Maximum Claim Amount Distribution Loans 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Feb-14 Feb-16 9
HMBS Buyouts & Payment Activity OPB/RPB ($ Millions) $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 FY 2012 FY 2013 FY 2014 FY 2015 Mandatory Purchase Events Voluntary Full Payments Partial Payments Other Payments 10
HECM State Distribution HECM loans are concentrated in California and Texas, with significant amounts in Florida and New York. 6.0% 14.6% 7.6% 8.2% Less than Greater 1.01% - 3.01% - or equal than 3.00% 5.00% to 1.00% 5.00% 11
Issuance Concentration FY2016 YTD FY 2015 HMBS Issuance Issuance Concentration 1% 1% 0% 0% 0% American Advisors Group 1% Top 3 = 51% Reverse Mortgage Solutions, Inc. Top 5 = 75% 7% Urban Financial of America, LLC 19% Top 10 = 98% 8% Reverse Mortgage Funding LLC Liberty Home Equity Solutions, Inc. Live Well Financial, Inc. 12% Nationstar Mortgage LLC 19% Plaza Home Mortgage, Inc. Sun West Mortgage Company, Inc. 14% Bank of America, National Association Cherry Creek Mortgage Company, Inc. 18% CIT Bank, National Association Silvergate Bank 12
Portfolio Concentration FY2016 YTD FY 2015 HMBS Portfolio Portfolio Concentration 0% 0% 0% 1% Nationstar Mortgage LLC 0% 3% Top 3 = 64% 4% Reverse Mortgage Solutions, Inc. Top 5 = 79% Urban Financial of America, LLC 4% Top 10 = 99% Wells Fargo Bank, N.A. 5% 33% American Advisors Group Reverse Mortgage Funding LLC 6% Live Well Financial, Inc. Liberty Home Equity Solutions, Inc. 8% Bank of America, National Association OneWest Bank, N.A. Plaza Home Mortgage, Inc. 15% 19% Sun West Mortgage Company, Inc. Silvergate Bank Cherry Creek Mortgage Company, Inc. 13
Ginnie Mae HMBS “Optics” HECM-to-HECM Refinances Issuer Net Worth / Liquidity 14
HMBS Future State More, better, faster HMBS disclosure “HZ” designation for the HREMIC screens Re-HREMIC capability Accelerated Monthly Reporting Requirements 15
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