Interactive Data Provides Independent Evaluations for GNMA Reverse Mortgage-Backed Securities
March 25 2010 - 9:00AM
Business Wire
Interactive Data Corporation (NYSE: IDC), a leading provider of
financial market data, analytics and related solutions, today
announced that its Pricing and Reference Data business is now
providing daily independent evaluations for fixed-rate reverse
mortgage-backed securities (HMBS) issued under the Government
National Mortgage Association (GNMA) Home Equity Conversion
Mortgage (HECM) program. This program is designed to provide
liquidity to reverse mortgage lenders. Interactive Data is among
the first data providers in the industry to offer daily evaluations
for fixed rate GNMA HMBS.
Reverse mortgages provide an alternative to traditional home
equity loans for homeowners seeking to monetize the equity in their
homes. As the baby-boomer generation enters retirement age, it is
expected they will turn to the equity in their homes to provide
supplemental cash flow during this time period of their lives.
Origination volume in 2009 for GNMA HMBS was approximately $8.5
billion, up more than 600% from 2008.* GNMA has indicated that it
expects 25-30 percent growth in HECM originations.** Despite these
increases, holders of GNMA HMBS have been challenged to find
independent evaluations for these securities. Holders that may have
previously relied on broker quotes or information from a dealer to
assess current market value can now realize the benefits of
subscribing to independent evaluations of fixed rate GNMA HMBS as
an input to their valuations process.
“GNMA HMBS have undergone dramatic growth over the past few
years, and we find that many of our clients -- especially insurance
companies, mutual funds, and custodian banks -- are increasingly
requesting evaluations for these structures,” said Liz Duggan,
managing director, Evaluations, Interactive Data Pricing and
Reference Data. “Our clients can now subscribe to our independent
evaluations for fixed rate GNMA HMBS as an input to their
valuations process.”
About Interactive Data Corporation
Interactive Data Corporation (NYSE: IDC) is a leading global
provider of financial market data, analytics and related solutions
to financial institutions, active traders and individual investors.
The Company's businesses supply real-time market data,
time-sensitive pricing, evaluations and reference data for millions
of securities traded around the world, including hard-to-value
instruments. Many of the world's best-known financial service and
software companies subscribe to the Company's services in support
of their trading, analysis, portfolio management and valuation
activities. Interactive Data, headquartered in Bedford, Mass., has
approximately 2,400 employees in offices located throughout North
America, Europe, Asia and Australia. Pearson plc (NYSE: PSO; LSE:
PSON), an international media company, whose businesses include the
Financial Times Group, Pearson Education, and the Penguin Group, is
Interactive Data Corporation's majority stockholder.
Interactive Data’s Pricing and Reference Data business provides
global securities pricing, evaluations and reference data designed
to support financial institutions’ and investment funds' pricing
activities, securities operations, research and portfolio
management. Interactive Data collects, edits, maintains and
delivers data on more than 6 million securities, including daily
evaluations for approximately 2.8 million fixed income and
international equity issues. Interactive Data specializes in
‘hard-to-get’ information and evaluates many ‘hard-to value’
instruments.
Pricing, evaluations and reference data are provided in the U.S.
through Interactive Data Pricing and Reference Data, Inc. and
internationally through Interactive Data (Europe) Ltd. and
Interactive Data (Australia) Pty Ltd.
For more information about Interactive Data Corporation and its
businesses, please visit www.interactivedata.com.
* Source: Reverse Mortgage
Daily:http://reversemortgagedaily.com/2010/01/14/ginnie-mae-hecm-mbs-issuance-up-over-600-in-2009/
** Source: Ginnie Mae HMBS presentation:
http://www.ginniemae.gov/issuers/HMBS_Presentation.pdf
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