About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Interactive Data Provides Independent Evaluations for GNMA Reverse Mortgage-Backed Securities

Subscribe to our newsletter

Interactive Data Corporation, a provider of financial market data, analytics and related solutions, today announced that its Pricing and Reference Data business is now providing daily independent evaluations for fixed-rate reverse mortgage-backed securities (HMBS) issued under the Government National Mortgage Association (GNMA) Home Equity Conversion Mortgage (HECM) programme. This programme is designed to provide liquidity to reverse mortgage lenders. Interactive Data is among the first data providers in the industry to offer daily evaluations for fixed rate GNMA HMBS.

Reverse mortgages provide an alternative to traditional home equity loans for homeowners seeking to monetise the equity in their homes. As the baby-boomer generation enters retirement age, it is expected they will turn to the equity in their homes to provide supplemental cash flow during this time period of their lives.

Origination volume in 2009 for GNMA HMBS was approximately US$8.5 billion, up more than 600% from 2008. GNMA has indicated that it expects 25-30% growth in HECM originations. Despite these increases, holders of GNMA HMBS have been challenged to find independent evaluations for these securities. Holders that may have previously relied on broker quotes or information from a dealer to assess current market value can now realise the benefits of subscribing to independent evaluations of fixed rate GNMA HMBS as an input to their valuations process.

“GNMA HMBS have undergone dramatic growth over the past few years, and we find that many of our clients – especially insurance companies, mutual funds, and custodian banks – are increasingly requesting evaluations for these structures,” said Liz Duggan, managing director, Evaluations, Interactive Data Pricing and Reference Data. “Our clients can now subscribe to our independent evaluations for fixed rate GNMA HMBS as an input to their valuations process.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: How to maximise the use of data standards and identifiers beyond compliance and in the interests of the business

Date: 18 July 2024 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Data standards and identifiers have become common currency in regulatory compliance, bringing with them improved transparency, efficiency and data quality in reporting. They also contribute to automation. But their value does not end here, with data standards and identifiers...

BLOG

China’s CITIC Securities Selects NeoXam DataHub for Master Data Management

CITIC Securities, one of the largest securities companies in China, has selected NeoXam DataHub to deliver a master data management (MDM) project covering all its asset classes, business entities and corporate actions. The solution will be used to collect, clean and process data from Bloomberg, Refinitiv, Wind, Caihui, Juyuan and other data sources, and generate...

EVENT

AI in Capital Markets Summit London

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

Regulatory Data Handbook 2023 – Eleventh Edition

Welcome to the eleventh edition of A-Team Group’s Regulatory Data Handbook, a popular publication that covers new regulations in capital markets, tracks regulatory change, and provides advice on the data, data management and implementation requirements of more than 30 regulations across UK, European, US and Asia-Pacific capital markets. This edition of the handbook includes new...