ReverseIQ Newsletters

Sacramento Story – HECM Trends November 2014

January 28, 2015

Last time in the HECM Trends report we wrote about Nevada bouncing back from the housing crash with growing HECM endorsment activity and this month Sacramento is our focus.

California’s capitol city and suburbs don’t feature much on page one of our report, except for a reference to zip code 95648 in the suburb of Lincoln registering with the 4th most loans for a single zip year to date. Once we get to page 2, however, several more signs point to a strong reverse mortgage market in the area.

  • Lincoln, CA also checks in as the 10th ranked city for growing average maximum claim amounts (MCA) for HECM loans, at $421,000, up $30,000 from last year
  • That’s also good enough for 7th place among zip codes for 95648, although it’s bested by 95747 in neighboring Roseville
  • Both Roseville (7th) and Sacramento (5th) both rank high for total MCA growth as well, having endorsed $23 million and $36.7 million in loans, respectively
  • Last but not least, Roseville’s 95747 ranks at the very top of all zip codes nationally for total MCA growth over last year, taking the lion’s share of the city’s activity with $15.9 million endorsed

We’re excited to announce a new online tool that allows you to pinpoint HECM activity all the way down to zip codes by lender. Contact us today for a demo!

Check out all the top states, cities and zip codes nationwide in the full report below by clicking the image below.

HECM Trends

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Lender Rankings – HECM Originators November 2014

January 26, 2015

HECM endorsements declined modestly in November after a big rise in October, split almost evenly across business channels. Retail originations declined slightly more, down -9.8%, than wholesale/broker volumes at -8.2%.

Lender volatility was a little more significant although still relatively muted as 9 of the top 10 declined on the month.

  • Live Well was the lone exception, growing 20.9% compared to October (top of page 2 using the link below) and showing even stronger 36.4% growth in their retail/direct originations (page 4 of the linked report).
  • High Tech Lending grew 116.7% to 78 loans on the month, putting the company in sight of last year’s endorsement total (down just -9.3% YTD on retail)
  • Open Mortgage rose 78.1% over October

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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Shifting Markets in Nevada – HECM Trends October 2014

January 12, 2015

HECM endorsements were up 29% in October, higher than each of the last two years for that month and even October 2011. This month we’ll dive into the state of Nevada to look behind the 25% increase in endorsements Jan-Oct and see how the state is shaping up.

Of the 96 zip codes with volume in NV Jan-Oct, 89134 is the leader with 23 loans. That’s an increase of 77% from 2013 when it ranked number 3. 89134 is part of Summerlin, on the western edge of the metro area and just before you get to Red Rock canyon. Beyond having a median household age of 62 (vs. 37 for NV overall), the zip code is also notable for having more than double the average income of the state.

But when we go beyond this top zip code to look at the top 5 growing zips statewide (average increase of 8.6 loans per zip YTD), the broader trend is moving toward zip codes with lower home values and incomes compared to the top 5 decliners this year (average decline of 5.3 loans per zip YTD).

The zip codes declining most this year in volume average 75% above state median home value compared to just 28% for the top growing zips this year. The same story exists on the income side, with the declining zips averaging 34% higher median household income than the state compared with 9% for the growers.

Put it together and you have a shifting market in Nevada as the industry lends to borrowers still above the statewide averages but much closer than last year.

Check out all the top states, cities and zip codes nationwide in the full report below by clicking the image below.

HECM Trends

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