ReverseIQ Newsletters

Wholesale Holding – HECM Originators February 2014

April 14, 2014

A second straight month of increased endorsements and now we know wholesale/broker volumes were ahead of retail too. Total HECM endorsements were up 2.1% in February, but that masked 12.4% growth in wholesale/broker volumes while retail shrank -6.3%.

We’ve seen this pattern before with more volatility in broker volumes than retail and it’s not terribly surprising in light of the higher recent pace of product changes disrupting the industry’s sales and marketing activities. Since we know March volumes were down and we’re expecting drops in endorsements for another month or two after that, we’ll see how each business channel performs as total industry volume declines again.

Notable news in this month’s report:

  • Wholesale/broker channel volume has risen 51.8% since the most recent industry volume low in Oct, while retail has grown just 4.1%
  • The competition for top lender rankings has never been tighter, as the top 4 lenders are within 1.3% market share over the past twelve months
  • Urban has the most wholesale volume, capturing 51% of loans originated by 318 active brokers on their platform
  • Liberty has the most active brokers (758) and the #2 wholesale ranking, while Moneyhouse (#8) captures an industry high 74% of its active brokers’ volume

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.

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Hanging Around – HECM Lenders March 2014

April 1, 2014

HECM endorsements dropped -10.6% in March to 4,618 loans. That’s an even larger decline (-20.9%) compared to last March, although that’s partly because March 2013 was the highest volume month for the industry since June 2011 – back when Wells Fargo, Bank of America and Metlife were all three still endorsing loans. For now, we’re expecting bigger drops in the next few months given where application and funding volumes have been since 9/30/13 HECM guideline changes. Of course, we also still have financial assessment ahead of us as well so the rest of the year looks challenging for HECM volume.

  • The decline was very broad based, with 9 of the 10 regions reporting declines. Southeast/Caribbean was the exception, rising 3.1% to pass Pacific/Hawaii for top volume in the month.
  • Top ten lenders fared better than the regions, with 4 of 10 reporting increased volume.
  • Liberty showed the biggest jump, rising 15.5% to report the highest volume of all lenders for the month
  • One Reverse, AAG and Urban also beat the national trend, rising 13.7%, 4.6% and 4.2%, respectively

Click the image below for the full report.

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New Growth – HECM Trends January 2014

March 25, 2014

Most people start the new year with a kiss and party noisemakers (even if just on TV), but since we only think about reverse mortgage stats it just means we have all new growth numbers to share with you in this month’s HECM Trends report!

On a pure volume basis HECM endorsements grew 19.7% in January but were down -2.5% from last year. That’s both good and bad, but what’s changed even more significantly is how that volume is split amongst states across the country.

State Share Trend

  • 5 years ago, 13% of HECM volume nationally was in California – a figure that has since risen to 20%
  • Florida has literally been cut in half over the same time period, down from 12.5% to 6.25%
  • Perhaps more astonishing, California was just 11.7% one year ago!
  • Nevada had an even higher share growth, from 0.44% to 0.85%, although even that was behind Maine, South Dakota and Hawaii (all starting from smaller numbers)

Check out your state/county/city/zip in the full report below (click on the image) or feel free to give us a shout if you’d like a personal deep dive to see how this information can focus your opportunities.

HECM Trends

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