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ReverseVision Supports HECM Lenders’ Transition from LIBOR to CMT Index, Updates Documents to Facilitate Index Migration

SAN DIEGO, Calif. -- ReverseVision, the leading provider of Home Equity Conversion Mortgage (HECM) and private reverse mortgage sales and origination technology, today announced it has updated all documents that reference an index to support both the Constant Maturity Treasury (CMT) and London Interbank Offer Rate (LIBOR) indexes.

The update was made in response to Ginnie Mae's All Participant Memorandum (APM) 20-12, which deems LIBOR-based adjustable rate HECM loans not securitized on or after January 1, 2021, as ineligible for pooling regardless of their origination or FHA case number assignment date. Adjustable rate HECMs that rely on the CMT index will be eligible for pooling without restriction. The LIBOR index is expected to sunset at the end of 2021.

ReverseVision has conducted an extensive quality assurance inspection of all standard documents affected by an index change to ensure lenders' seamless transition from LIBOR to CMT. ReverseVision will update custom documents and private reverse mortgage program documents upon request free of charge. Additionally, ReverseVision has enhanced document language and reference points in anticipation of a future migration to the Secure Overnight Financing Rate (SOFR) index.

"ReverseVision had existing legacy support for CMT-based rate calculations built into the platform because it was the benchmark before LIBOR," said ReverseVision President Joe Langner. "Due to the renewed relevance of the CMT index, we have taken additional steps to ensure that lenders can seamlessly switch between it and LIBOR. Additionally, ReverseVision has already enhanced our products in anticipation of a future migration to SOFR."

About ReverseVision

ReverseVision, Inc. is the leading Home Equity Conversion Mortgage (HECM) and private reverse mortgage sales and origination technology platform, supporting more reverse mortgage transactions than all other systems combined. The company's comprehensive product suite flexes to lenders' unique business and operational models, connecting all lending participants across the entire reverse mortgage lifecycle to meet borrowers where they are in life. A five-time HousingWire TECH100(tm) company, ReverseVision continues to build on its technology's pioneering capabilities with frequent enhancements.

For more information, visit https://www.reversevision.com/.

Twitter: @reversevision #digitalmortgage #HECM

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Business, Free News Articles

Vice Capital Markets: Favorable Market Conditions Provide Impetus for Mortgage Lenders to Explore Custom Ginnie Mae Pools

NOVI, Mich. -- Vice Capital Markets President Troy Baars today urged lenders to explore custom Ginnie Mae pools as part of their overall execution strategy in light of recent increases in Ginnie Mae security volume, along with renewed investor interest in custom pools.

"Refinancing of existing mortgages has been driving an uptick in Ginnie Mae-insured securities, as investors now have cash to reinvest," said Baars. "Because specified pools offer prepay protection that exceeds current multi-issuer pools, investors are willing to pay more for these securities to help protect their premium pricing from rapid payoffs. As such, now is the perfect time for lenders to consider adding custom Ginnie Mae pool deliveries to diversify their overall hedging strategy and improve their bottom line."

Vice Capital Markets has been helping independent mortgage lenders, credit unions and banks to maximize their secondary market execution by structuring a variety of custom pools optimized to generate the highest possible net cash flow and servicing value. Using its extensive dealer relationships and active trade desk, Vice Capital Markets is able to identify pay-up trends and track all custom pay-ups to amplify hedging activities and deliver immediate cash value.

"What distinguished Vice Capital Markets from other hedging firms is the combination of personalized service and the level of experience behind our trade desks," Baars added. "Our clients know they can pick up the phone at any time during the business day to reach a Vice executive and discuss their hedging strategy. Additionally, our traders possess on average 10 years of experience, which provides our clients with peace of mind knowing their trade activities are being managed by a senior-level staff person."

To learn more about adding custom Ginnie Mae pools, contact Troy Baars at (248) 869-8100 or tbaars@vicecapitalmarkets.com.

About Vice Capital Markets:

Entering its 20th year in business, Vice Capital Markets offers complete hedge advisory, reporting and trading services to banks, credit unions and mortgage companies throughout the country. Trading more than $70 billion annually, Vice Capital's proprietary risk-management models and complex investor and agency best execution platform have consistently yielded safe and effective profit maximization for its clients. Learn more at https://www.vicecapitalmarkets.com/ or call (248) 869-8100.

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