July 19, 2016
HECM endorsement volumes for the year through May were down -9.4% from a year earlier, and even though June volume increased it was still well behind June 2015 so look for this comparison to worsen next month.
That being said, we can always find bright spots in our HECM Trends report:
- Last month we talked about the impressive growth in Denver and this month it got even better, up 53.9% over Jan-May 2015
- San Diego also improved from last month, now at 16.8% growth YTD
- Los Angeles inched back into positive territory at 2.2% growth on the year
Be sure to check out the full report by clicking the image below.
July 12, 2016
HECM endorsements fell -14.2% in May, comprised of a -17.5% drop in the larger Retail channel and -9.6% decline in Wholesale/Broker channel.
One interesting point about the decline is that with overall industry volumes at the lowest level since August 2014, Wholesale/Broker volume has held up significantly better in the subsequent 21 months:
- Wholesale average monthly volume since Aug 2014 has been 49% above the low point, compared to just 33% higher for Retail
- Wholesale in May remained 22.9% above the Aug 2014 low while Retail squeaked in just 4.6% above that level
Put it together and you see Wholesale showing more resilience to volume declines lately compared to Retail, underlining the role smaller companies play in the industry.
And as always, a couple companies stood out on our page 4 originator rankings:
- Fairway Independent jumped 12.5% in May and 476% year to date (YTD)
- American Pacific grew 75% in May to bounce into the positive YTD
- Longbridge Financial stacked up 550% more loans in May to cap an impressive 238% growth YTD
And all three companies did it without relying on refinances to boost short term volume. Very impressive to see their hard work paying off.
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.
July 5, 2016
HECM endorsements rose 3.4% in June to 3,771 loans, recovering a piece of the big drop in May. Although it was small, the increase was spread widely across the country with 8 of the 10 regions reporting growth:
- Southwest reported the biggest rise, up 14.2% from last month and more than halfway back from the region’s May drop
- Rocky Mountain barely missed a double digit increase, rising 9% but recovering far less of last month’s drop than most others
- Great Plains is the only region <100 loans per month these days, but did nudge up 7% on the month
Among lenders the picture was more volatile, with several up double digits on the month:
- High Tech Lending jumped 52.9% to 159 loans and smash their prior record total of 114 set just 3 months earlier
- Synergy One grew 22% to 183 loans and their highest volume since December
- Liberty rose 20.9% to 272 loans, sliding up one spot in the rankings to third
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.