HMBS 2.0 Implementation Under Political Transition
As the transition of power took place, the release of HMBS 2.0’s final term sheet occurred ahead of expectations. The Mortgage Bankers Association (MBA) expressed its support for the implementation of HMBS 2.0, emphasizing its benefits in terms of reducing costs, enhancing liquidity, and managing risks associated with the HECM program.
The National Reverse Mortgage Lenders Association (NRMLA) is also dedicated to seeing HMBS 2.0 come to fruition, despite potential impacts from the political transition. Ginnie Mae, however, has remained silent on the topic, leaving industry stakeholders eager for updates on the implementation timeline.
In its fiscal year 2024 financial report, Ginnie Mae highlighted the significance of the HMBS program in meeting the needs of older Americans and improving liquidity access. With the Biden administration now in place, further actions related to housing are expected to be on hold until key appointments, such as HUD Secretary Scott Turner, are confirmed.
Turner’s nomination has advanced, signaling progress in the confirmation process. Once in office, key decisions regarding FHA leadership and Ginnie Mae presidency are likely to follow suit. The Mortgage Bankers Association has called for swift confirmation of Turner to facilitate leadership appointments at FHA and Ginnie Mae.
Overall, the industry remains optimistic about the potential improvements that HMBS 2.0 could bring, pending the confirmation of key officials and the continued collaboration between industry stakeholders and government entities.