Archive for the ‘HECM Originators’ Category
HECM volumes took it on the chin in September, dropping -10.6% from August. Retail (-11.1%) and Wholesale (-9.9%) fell by similar percentages, with the drop of First National Bank of Layton from Retail due to their previously announced exit likely made the difference between the two.
Continuing the trend of companies capitalizing on lender exits, Proficio jumped from 1 unit last month to a striking 53 in September, good enough for a 9th place ranking for the month (see page 4 of the report below). Several other companies also saw big increases:
- Associated Mortgage Bankers has been coming on strong all year, growing 214% year to date. Their 12% growth this month is lower than months past, but good enough to join the top 10 in the number 8 slot.
- Nationwide Equities continues to grow retail 60+% this month and year to date. They’re growing wholesale too and rank 25th on a combined basis over the past 12 months
Find your company in the trailing twelve month rankings (page 3) or August rankings (page 4) by clicking the image below to access the report.
August HECM endorsements bounced back up 7.1% from what we now know was only the first exceedingly low volume month in Q3. We also see that the bounce was entirely in the Retail/direct channel of the business, whereas Wholesale/TPO business was essentially flat from July to August.
Looking back to last August, it’s clear that the exit of major brands like Wells Fargo, Bank of America and Metlife is having an impact on the channel mix of the industry. August makes a particularly opportune moment to look back at the channel mix, as August 2011 was the last month with a full share from Wells Fargo’s retail presence.
As you can see from the chart above, Retail/direct endorsement volume is down -35% in the past 12 months, whereas Wholesale/TPO volume is down just -19%. Nothing to be proud of in either case, but there’s no doubt which result hurts less.
Among lenders gaining from the shifting tides, these companies are heading to San Antonio next week with celebration in mind. All rankings below can be found on page 4 of the report linked below.
Top 10 (excluding wholesale):
- American Advisors Group took the top originator title for August after more than doubling from July and is up 107% year to date
- Genworth popped 37% from last month and 146% YTD
- Security One grew 44% in August and 129% from last year
- iReverse grew 89% for the month and 5% from Jan-Aug 2011
Up and coming:
- Cherry Creek was down slightly on the month (-8%) but up 307% from last year
- GMFS was up 49% last month and 145% YTD
- Maverick Funding grew 55% in August to 51 loans, after not having a single loan in the first 8 months of last year
Find your company in the trailing twelve month rankings (page 3) or August rankings (page 4) by clicking the image below to access the report.
In our HECM Lenders report about July’s volumes, we noted that Metlife’s exit seemed to work through the endorsement numbers faster than Wells and BofA last year. The new information to report here is that both Wholesale/brokered and Retail/direct endorsements were down strongly(-27.8% and -24%, respectively), even though brokers would seem more likely to maintain their business volumes than retail loan officers.
Of course, looking at the last several months shows that Wholesale/brokered volumes also had a much bigger jump in June. So the channel is actually still running significantly ahead of Retail/direct, down just 11% from the average of Apr/May vs. 18% for Retail.
Among lenders, Generation Mortgage was the sole company in the top 10 showing any notable increase in volume from June to July, up 17.4%. (top of page 2)
And looking at all endorsements based on origination company for July on page 4 (company taking application gets credit even if not FHA approved), we don’t expect much impact to register yet from Metlife’s exit given that May applications would normally show up in August endorsements.
One notable rise we’ve commented on before is Greenlight Financial, which tied New Day Financial for 11th place in the Originator rankings this month after entering the industry just last year. Always good to see veterans of the industry doing well in a new place (congrats to Dave and Brett!) – a re-occuring theme in these days of lender exits and consolidations.
Click the image below to access the report.
