HMBS

Feature: HMBS as “Holy Grail” of Fixed-Income Securities 

Before the mortgage-sparked national and global financial tsunami of 2008 which swept it and others into the rubbish of financial history, Lehman Brothers’ prowess in mortgage securitization (and all things mortgages) was the envy of Wall Street. For reverse mortgages, in the days when Fannie Mae was the sole buyer of whole HECM loans in the secondary market, Lehman supplied capital to launch the proprietary jumbo reverse mortgage market. It did not stop there. It dug deeper into reverse country with a number of strategic moves: the acquisition and consolidation of portfolio companies, such as Financial Freedom, Unity Mortgage, and