Many housing experts in the months leading up to the inauguration expected this. But HMBS 2.0’s final term sheet arrived nearly two months before Trump’s inauguration, and the release of the term sheet may not constitute “final rulemaking” strictly under the provisions of the executive order, according to the understanding of a mortgage policy official.
HousingWire’s Reverse Mortgage Daily (RMD) reached out to relevant trade groups about the potential timeline. The Mortgage Bankers Association (MBA) remains committed to seeing the implementation of HMBS 2.0 through, according to Pete Mills, MBA senior vice president of residential policy and strategic industry engagement.
“MBA is supportive of moving forward on the HMBS 2.0 implementation,” Mills told RMD. “It aligns with the goal of reducing long-term costs, supports much needed, additional liquidity in the HMBS market, and will help manage the risk associated with the HECM program.”
But regardless of the potential scope of the order itself, others expected that any outstanding policy would likely be impacted by the political transition. Steve Irwin, president of the National Reverse Mortgage Lenders Association (NRMLA), said that the association continues its work to ensure that HMBS 2.0 crosses the proverbial finish line.
“I anticipated such a freeze on any proposed rulemaking that might be in process, and the introduction of any new rule making,” Irwin told RMD. “This type of regulatory freeze is typical of an administrative transition. I am working with the NRMLA executive committee to further analyze the scope of impacts of this announcement.”
But Ginnie Mae itself has been silent on the topic of new developments for HMBS 2.0 since the release of the term sheet. RMD reached out multiple times to HUD and Ginnie Mae officials about the potential implementation timeline of the program, but did not receive any response.
In the company’s fiscal year 2024 financial report, Ginnie Mae discussed the supplemental program multiple times as evidence of the work that the company is doing to enhance liquidity and market participation.
The company said it is committed to “maintaining a well-functioning HMBS program that meets the needs of older Americans,” the December report said, and it will continue working with its partners and industry stakeholders to ease liquidity access.
“We believe the path we are on, in collaboration with industry stakeholders, will play an important role in improving the HMBS program,” the report explained. “The proposed changes will provide issuers with better liquidity access 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 is likely on “pause” until the administration’s nominee for HUD secretary, Scott Turner, is seated.
Turner cleared a logistical hurdle to be seated on Thursday, when his nomination advanced out of the Senate Committee on Banking, Housing and Urban Affairs on a party line vote. His nomination now goes to the full Senate, and political analysts largely seem to 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, as well as a potential new candidate for Ginnie Mae president — are more likely to be nominated.
On Thursday, MBA called for the swift confirmation of Turner, saying his confirmation “is an important step toward building his key staff and installing leadership at [FHA] and Ginnie Mae.” NRMLA previously signed onto a previous letter to congressional leaders similarly urging quick action on Turner’s nomination.
