Archive for the ‘HECM Originators’ Category
Final lender rankings for 2013 are here! Find your company in the consolidated list of lenders on page 3, or single month rankings of all originators including brokers on page 4.
Lender rankings shifted significantly over the course of 2013, especially as the response to 9/30 product changes started to settle in. Four different lenders achieved the top spot on a monthly basis!
- Liberty finished with the highest volume for the year and led industry volume Jan-Mar and again in June and August, before trending down toward year end
- Security One/RMS finished second with consistently high volume capped off in December with the #1 ranking
- American Advisors Group finished third after reaching the top spot in April and May
- Urban finished fourth in a wild year that saw the company lead all lenders in 4 different months: July and September-November
Click the image below to access the full report.
We previously reported that HECM endorsements for Nov 2013 were up 11.9% from October, but today we will dive into more detail about retail/direct lenders vs. wholesale/broker channels.
As we’ve mentioned before, a familiar pattern for these channels is to see wholesale as a more volatile channel for loan volume than retail. In periods of increasing volume wholesale goes up more than retail and in periods of decline wholesale takes the brunt of that as well. It usually works that way for individual companies and we’ve seen this happen in the past as well.
In the past year though, this has been more wrong than right as we’ve seen it happen in just 4 of the past 12 months. The other 8 months saw wholesale moderating volume swings in retail by either declining less in down months or growing slower in growth months (and even growing during down months and declining during growth months).
There are many possible reasons for this, not least of which is the less intense timing push for endorsing loans relative to funding that could render this more noise than signal, but looking at counts of companies and other metrics doesn’t lend an easy answer. For now, we’ll just accept that this is another change in an industry that’s been full of them for some time now.
On to the leaderboard:
- Despite some surprisingly low volumes in Sep/Oct, Liberty got back on track in Nov with 702 loans (good for second place) and looks on track to end 2013 with the comfortable #1 ranking
- American Advisors Group had top performance among all lenders for the third month running, at 736 loans
- Cherry Creek Mortgage turned in its second best performance of the year, although it did follow an unusually low October
Find your company in the trailing twelve month rankings (page 3) or November rankings (page 4) by clicking the image below to access the report.
Updates from a broker and wholesale perspective have been hard to come by this year, but publishing this July edition of HECM Originators should give a better sense of total industry rankings including the effects of broker volumes.
We already know that HECM endorsement volume was up in July, but it had been harder to track business mix between retail and wholesale and combined volume rankings. We can see from this report that wholesale continues to hold steady around 56% of volume. It’s been as high as 61% and as low as 53% in the past twelve months.
From a lender rankings perspective, there’s a rather interesting spin happening right now.
- Liberty continues to hold the top spot by virtue of ranking 2nd in wholesale and 4th in retail
- Security One/RMS is ranked second, but at 4th in wholesale and 3rd in retail
- Urban comes in 3rd overall as the top wholesale lender and 7th in retail
- AAG is 4th with the top retail ranking and 8th for wholesale
- There’s also a larger loan volume gap between Liberty at 1st and S1L/RMS at 2nd compared to S1L/RMS and Generation @ 5th, showing the effect of tight competition for the 4 spots below our current largest lender
Find your company in the trailing twelve month rankings (page 3) or July rankings (page 4) by clicking the image below to access the report.