February 2, 2016
Looks like the coast might not be clear quite yet in the wake of Financial Assessment. HECM endorsements fell -8.1% to 3,890 loans in January after a small December increase. That puts FA impact at -32.3% decline from the (admittedly somewhat artificially inflated) August high volume level.
Of course, that didn’t stop some regions and lenders from starting the year off on a positive footing.
- Rocky Mountain was the only region to grow in January, showing a 6.6% increase on the month to 241 loans
- Among lenders, Liberty HES bounced back from a poor December, leaping 273% to 291 loans
- Home Point also showed a gain, up 11.1% to 110 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!
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January 25, 2016
Refinances have been a hot topic in the reverse world lately, with NRMLA issuing updated guidelines and HMBS investors asking more questions about the higher prepays than they might have expected when paying significant premiums for new pools. In November, 11% of all HECM endorsements were refinances – a figure which has changed significantly over time as you can see in the graph below.
Rather than focusing on the geographic elements of this report, we’d just like to point out that HECM Trends offers a monthly glimpse into how many HECM endorsements come from refinance transactions (one HECM replacing a prior HECM). There are more than five years of archives of this report available on our site, so check it out and if you want to dig into further detail don’t hesitate to contact us.
You can find the monthly refinance stats towards the top left of page 2 in each report.
Be sure to check out the full report by clicking the image below.
January 19, 2016
HECM endorsements fell -7.1% in November and the wholesale/retail split diverged substantially
- Wholesale dropped -18.3%, marking the third month in a row of faster declines than Retail as the industry dropped in the wake of Financial Assessment implementation
- Retail posted 1.6% growth to bounce off the low levels from October
The disparity is even greater when comparing the cumulative effect of the past three months. Wholesale is down -44.9% from August volume levels, while Retail is down a comparatively small -15.8% over the same period.
As you might expect given the business channel differences, several top lenders bucked the overall industry trend:
- Live Well jumped 54.2% to 293 loans and their third highest volume level so far in the year
- One Reverse Mortgage rode retail strength to 357 loans for a 12.6% gain in the month
- Reverse Mortgage Funding eked out 0.4% rise to 272 loans
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!
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