WASHINGTON – The Department of Housing and Urban Development (HUD) has published a request for information titled “titled “Future of the HECM and HMBS Programs and Opportunities for Innovation in Accessing Home Equity.”
Analysts with JD Supra said the RFI is important for all participants in HUD’s Home Equity Conversion Mortgage (HECM) program, including lenders, servicers, and investors.
The RFI acknowledges a recent downturn in borrower participation in the HECM program, noting that “HECM endorsements declined by 59% since 2022,” JD Supra said. It further highlights that Ginnie Mae’s HECM mortgage-backed securities (HMBS) program has seen a decrease in the total dollar amount of HECMs securitized since 2022, “with only $6.3 billion in unpaid principal balance being securitized in 2024, nearly the same level as that of a decade ago.”
What Release Indicates
The RFI’s release indicates HUD recognizes the HECM and HMBS programs may need updates to better facilitate their goal of providing “access to home equity for senior homeowners,” JD Supra added.
The RFI solicits general feedback from interested parties regarding “the appropriate role of the HECM and HMBS programs and enhancements to these programs.”
The RFI also provides a list of 21 questions related to the current and future state of the HECM and HMBS programs that “HUD is particularly interested in receiving input from interested parties.”
The Questions
The questions are grouped into the following topics:
• Program performance, market role, and emerging risks.
• Consumer interest and demand.
• Origination volumes.
• Liquidity.
• Program improvements.
Comments are due by Dec. 1, 2025, and may be submitted electronically through the Federal eRulemaking Portal or by mail to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW, Room 10276, Washington, D.C. 20410-0500.
