On October 2, 2025, HUD, through FHA and Ginnie Mae, issued a Request for Information (RFI) seeking public input on the current and future roles of the Home Equity Conversion Mortgage (HECM) and HECM Mortgage-Backed Securities (HMBS) programs. Stakeholders are invited to comment by December 1, 2025 (Docket No. FR-6551-N-01) via regulations.gov or mail. Federal Register :: Future of the HECM and HMBS Programs and Opportunities for Innovation in Accessing Home Equity
The RFI spotlights several priority areas: program performance and emerging risks to FHA’s Mutual Mortgage Insurance Fund and Ginnie Mae; identifying the reasons behind declining consumer demand despite rising senior home equity; borrower understanding and safeguards; and barriers to lender participation. On HMBS, HUD and Ginnie Mae are probing investor demand, issuance volumes, and structural features that could improve issuer operations and liquidity. Potential HECM program changes under consideration include updates to servicing tools, HECM refinance policies (e.g., net benefit test), use of note sales, Life Expectancy Set Asides (including possible mandates), underwriting/financial assessment refinements, asset resolution and claim processes, monitoring for deferred maintenance, and whether statutory or administrative adjustments—such as renewed interest in HECM Lender Insurance—are warranted. Notably absent from the RFI is any mention of Ginnie Mae’s preliminary “HMBS 2.0” term sheet published in November 2024, which had outlined a proposed HMBS program featuring broader eligibility for pooling active and nonactive HECM buyouts.
For lenders, servicers, issuers, investors, and consumer advocates, this is an opportunity to potentially shape reverse mortgage policy and improve secondary market liquidity. We encourage clients and partners to assess how potential changes to HECMs and HMBS may affect origination economics, pipeline execution, servicing timelines, regulatory compliance obligations and risk management, and to consider submitting data-driven input responsive to HUD’s questions.