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Posts Tagged ‘Genworth’

Ball Dropped – HECM Lenders December 2012

It’s perhaps fitting that December HECM endorsement totals came in at 3,912 loans, down -11.8% from November and registering the 4th month below 4,000 loans in the past 6. That brings total 2012 calendar year (as opposed to federal fiscal year that FHA uses) endorsements to 52,992, down -22.9% from 2011.

  • For the year, the drop was steepest in New England at -28.8%
  • The Rocky Mountain region had the smallest decline at -13.1%, but it also tied for the 3rd smallest volume region in the country so that didn’t help the industry overall much
  • Month over month, these two were also the only regions to increase volume from November, with Rocky Mountain seeing its highest monthly total since June
  • Mid Atlantic declined the most from last month, dropping -23.9% to make November look more like a dead cat bounce than a lasting trend

Among lenders, December saw Liberty Home Equity Solutions (formerly known as Genworth Financial Home Equity Access) jump 44.7% to its highest volume since February. On the flip side, Urban Financial dropped back -34.6% after a healthy increase in November.

A little housekeeping note – HUD has informed us that some HECM data will not be available until further notice, so the HECM Originators and HECM Trends reports will likely be on hiatus for a month or two.  

Please click the image below for the full report.

Sorting Out – HECM Lenders October 2012

HECM endorsements for October totaled 3,745, growing a paltry 1.1% from the low registered in September. This wasn’t a large enough increase to even beat the July reading, so October goes in the books as the second lowest volume month since July 2005.

Among geographic regions, 5 were up and 5 were down:

  • The top 3 regions all increased, although only Southeast/Caribbean grew significantly – up 15.7%
  • New York/New Jersey and New England are both down more than -50% since June compared to national decline of -27.8%. While the weakness in New England appears relatively broad based (page 3), the NY/NJ region is being dragged down by slumping performance in New Jersey specifically. Both Newark and Camden field offices registered larger declines vs. last year than NYC and upstate NY.
  • Oklahoma City leads a short list of just three field offices with an increase compared to last year at 6%. Salt Lake City (4.6%) and Columbus, OH (2%) also improved, with SLC averaging 84 loans per month while the other two were both under 29.

Among lenders, there were some notable performances:

  • Security One Lending grew 141% to lead all lenders at 636 endorsements. This is an enormous jump that we’ve seen dissipate somewhat in past experience with other lenders (see: American Advisors Group post-August), although in both cases there is reason to believe a good portion of that jump will be sustained and even eclipsed in the months ahead.
  • Generation grew 33.5% to capture third place behind Genworth/Liberty and just ahead of One Reverse.

Last but not least, we saw a significant decline in case numbers issued in September. After briefly rising above the benchmark set by the month after Wells Fargo’s exit last year, this key indicator of future endorsements dropped below all months since Metlife exited.

In past years we’ve seen a pullback toward year end, but September would be very early to see that effect taking hold. It’s possible companies pulled back marketing in the heart of election season, but there’s little evidence of that effect historically and we haven’t heard about significant declines in marketing from any of the large companies.

Please click the image below for the full report.

Shifting Tides – HECM Originators August 2012

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.