Data analytics firm RiskSpan has added new reverse mortgage functionality to its cloud-based Edge platform, allowing users to see Home Equity Conversion Mortgage (HECM) data from Ginnie Mae and a breakdown of involuntary prepayment information.
“The GNMA HECM dataset is now available in Edge’s Historical Performance module, allowing market participants to find performance differentials within FHA reverse mortgage data,” RiskSpan said in a statement. “As with conventional datasets available on Edge, users slice and dice by any loan attribute to create S-curves, aging curves, time series and other decision-useful analytics.”
Platform users are also able to parse Ginnie Mae buyout metrics by reason, including whether individual reverse mortgage loans were in delinquency, loss mitigation or foreclosure when they were removed from a HECM-backed Security (HMBS).
“Users are traders, modelers, analysts, and portfolio managers at financial institutions that invest in Ginnie Mae HECM securities,” said Timothy Willis, head of communications at RiskSpan. “Investors slice and dice by loan attribute to find pools of reverse mortgages that comport with their risk appetites. Modelers and analysts can use these to back-test and fine-tune prepayment projections used for valuations and risk analytics. Policy analysts and economists can use the data to understand the growth and performance of the securitized reverse mortgage market.”
The new update will allow users to go much deeper into HMBS data than they were previously able to through the platform, Willis explained.
“Previously, users were able to use the platform to run valuations and risk analytics on reverse mortgage securities, but this is the first time that users are able to drill down and look at the individual loans themselves,” he said. “Having this data allows users to drill down in the performance of reverse mortgages based on more than 70 (and growing) different loan attributes, e.g., borrower age, issue date, issue interest rate, loan age, margin and property type.”
Having the ability to look at loan-level data can help provide more reliable analytics, and the offering for the reverse mortgage market is a key piece of the equation for RiskSpan’s business, Willis said.
“An essential part of our identity is enabling clients to model all of their mortgage asset classes (including reverse mortgages) on a single platform,” he said. “For the past several years we have partnered with the National Reverse Mortgage Lenders Association (NRMLA) to produce its quarterly Reverse Mortgage Market Index (RMMI).”
The quarterly RMMI is a measurement that tracks the levels of senior-held home equity in the United States.
In the most recent RMMI release, published in October, homeowners aged 62 and older saw their collective housing wealth increase in Q2 2022 by 4.10% compared to the previous quarter. This constitutes an increase of approximately $456 billion to a record of $11.58 trillion, according to data measured by NRMLA and RiskSpan.
