Many housing experts expected this in the months leading up to the inauguration. But the final term sheet of HMBS 2.0 arrived nearly two months before Trump’s inauguration, and the release of the term sheet may not constitute “final rulemaking” strictly under the terms of the executive order, according to the view of one mortgage policy official.
HousingWire‘s Reverse Mortgage Daily (RMD) reached out to relevant trade groups about the possible timeline. The Association of Mortgage Bankers (MBA) remains committed to implementing HMBS 2.0, said Pete Mills, MBA senior vice president of residential policy and strategic industry engagement.
“MBA supports the progress of the HMBS 2.0 implementation,” Mills told RMD. “It aligns with the goal of reducing costs over the long term, supports much-needed additional liquidity in the HMBS market and will help manage the risks associated with the HECM program.”
But regardless of the potential scope of the order itself, others expected that any outstanding policy would likely be affected by the political transition. Steve Irwin, chairman of the National Association of Reverse Mortgage Lenders (NRMLA), said the association continues its work to ensure HMBS 2.0 crosses the proverbial finish line.
“I expected such a freeze on any proposed regulations that might be pending, and the introduction of new rules,” Irwin told RMD. “This kind of regulatory freeze is typical of an administrative transition. I am working with the NRMLA Executive Committee to further analyze the extent of the impact of this announcement.”
But Ginnie Mae itself has been silent about new developments for HMBS 2.0 since the release of the term sheet. RMD reached out to HUD and Ginnie Mae officials multiple times about the program’s potential implementation timeline, but a HUD spokesperson said the government company had nothing to share at this time.
In the company’s fiscal 2024 financial report, Ginnie Mae discussed the supplemental program several times as evidence of the work the company is doing to improve liquidity and market participation.
The company said it is committed to “maintaining a well-functioning HMBS program that meets the needs of older Americans,” according to the December report, and it will continue to work with its partners and industry stakeholders to improve access to facilitate liquidity.
“We believe the path we are on, in collaboration with industry stakeholders, will play an important role in improving the HMBS program,” the report said. “The proposed changes will provide issuers with greater access to liquidity and lead to a more robust HMBS market.”
But this report was also conducted under the Biden administration, and further action on housing under the new Trump administration will likely “pause” until the administration’s nominee for HUD Secretary, Scott Turner, is in place.
Turner overcame a logistical hurdle to take his seat on Thursday, when his nomination came out Senate Committee on Banking, Housing and Urban Affairs on a party-line vote. His nomination now goes to the full Senate, and political analysts appear to largely agree that he is likely to be confirmed.
Once that happens, other key decision makers — including a candidate to succeed Julia Gordon as FHA commissioner, and a potential new candidate for Ginnie Mae’s presidency — are more likely to be nominated.
On Thursday, MBA called for Turner’s quick confirmation, saying his confirmation “is an important step toward building its key staff and installing leadership at [FHA] and Ginny Mae. NRMLA previously signed an earlier letter to congressional leaders that also urged swift action on Turner’s nomination.
