Q: What is the HECM Price Index?
A: The HECM index reflects real time HMBS (bond pricing) for a basket of 2017 PLF Annual LIBOR loans. We refresh the pricing daily for presumed new originations, holding the basket of loans constant.
Q: Why did you create the HECM Price Index?
A: We are asked regularly for price indications or bond market direction. We created the HECM Price Index to give everyone from bond traders to loan officers a feel for how the market is moving day over day.
Q: Where do you get these prices?
A: Baseline generates pricing in real time using our market leading HECM pricing engine. We update forward rate curves throughout the day and run cashflows at loan level to return bond and reverse mortgage servicing rights (HMSR) pricing. This output includes only the bond levels.