October 1, 2015
HECM endorsements dropped -18.8% to 4,671 loans in September, ending a very solid 3 month run of volume inflated by borrowers funding loans ahead of Financial Assessment rules going into effect. Those rules went into effect all the way back in April for new case numbers issued, but given the lag times associated with funding and endorsing loans after case number issuance we’re just seeing the impact now.
- Nine of the ten regions we track saw volume decline in the month, with Rocky Mountain being the lone exception – and only by virtue of holding steady
- Interestingly, only two of the ten regions declined more than the national average. Northwest/Alaska shrank -38.5% and Pacific/Hawaii declined -31.7%.
Among lenders, just 2 of the top 10 advanced against the industry downtrend:
- Home Point (fka Maverick) jumped 38.6% to 122 loans
- AAG moved even further ahead of the field by climbing 1.6% to 1,239 loans
If your company is FHA approved check out the rankings on page 5 of the report below. If your company is not FHA approved, watch out for our next edition of HECM Originators to find your ranking!
Click the image below for the full report.
September 23, 2015
HECM endorsement volumes took a breather in July, down -5% from June. Even with the decline, volumes remained above year ago levels and it showed in the increased growth rates for several areas:
- 8 of the top 10 states showed higher growth rates year to date compared with last year, with Florida leading the way at 29.3%
- The top 7 cities in the country all improved their growth rates as well, highlighted by Houston at 28.5% but followed closely by Los Angeles at 26.6%
- Average MCAs are also increasing around the country, with FL placing 4 cities in the top 10: Naples, Delray Beach, Miami and Hollywood
Check out more detail in the full HECM Trends report below by clicking the image below.
September 16, 2015
HECM endorsements fell -5.1% in July, but the channel split was more interesting than usual. Wholesale/brokered volume grew marginally while Retail/direct dropped -9.3%. That’s out of character for the typical pattern in which we see wholesale as more volatile than retail, but the real test comes when endorsement volumes are likely to fall (perhaps as early as Sep) due to Financial Assessment rules taking effect.
For now, on to the items of note in this month’s HECM Originators report:
- RMF grew 34.6% to 393 loans, good enough for #5 ranking for the month although One Reverse is still ahead on a trailing twelve months basis
- Cherry Creek increased 32.7% to 146 loans to continue a solid 4 month growth trend that has seen them more than double their March volume
- Urban jumped 23% to 764 loans – their highest since July 2013
Don’t forget to check out the rankings on page 3 (trailing twelve months with channel splits) and page 4 (single month retail only). If your company is not an FHA approved lender, these are the only industry rankings where you’ll appear!
Click the image below to access the full report.