ReverseIQ Newsletters

Posts Tagged ‘hecm’

Looking Out – HECM Trends September 2012

We’re just as curious to hear what FHA will announce as you are, and while we think there are some reasonable options available to address concerns about full draw requirements on the fixed rate product, the big wild card seems to be FHA’s mutual mortgage insurance fund health and specifically the financial health of the HECM book of business from prior years. Unfortunately, there’s not a lot we can do about that at this point, but it did bring up an idea while we were scanning our database.

No matter what next year has in store for the FHA HECM and our reverse mortgage industry, it’s always a good idea to target your marketing instead of blasting away with the shotgun approach.

We ran a quick list of the top MSAs with at least 100 HECMs endorsed Jan-Sep, ranked by % ARM. Consider the top 5 list below a free contribution from us to you as we give thanks for a productive year and keep our fingers crossed for focusing on next year’s trends.

  1. New Haven-Milford, CT
  2. Bridgeport-Stamford-Norwalk, CT
  3. Cambridge-Newton-Framingham, MA
  4. Providence-New Bedford-Fall River, RI-MA
  5. Chicago-Naperville-Joliet, IL

We found it fascinating that 4 of the top 5 were in New England, and 6 of the top 8 as well. We have many thoughts about why this might be, but always curious to hear from our readers too if you think you know what makes these areas different.

We are also posting here Part 1 of a recent interview from San Antonio NRMLA conference with Shannon Hicks of Reverse Focus. Thanks to Shannon for the interview opportunity and video editing work to bring us fully into the social media video age!

Check out the full report below by clicking on the image and learn more about what’s working now in reverse.

HECM Trends

Better Than Average – HECM Trends August 2012

Last month in this space we talked about three cities where average home values were growing for HECM loans, and this month we’ll follow that up with three cities gaining in total maximum claim amounts (MCA) year to date.

  • Kansas City, MO: Total MCA of all HECMs endorsed Jan-Aug 2012 has grown 70% from the same period last year, enough for first place in our list. KC is seeing both higher average loan sizes (up 17.9%) and more loans, so things are looking rosy. Now if only their football team could turn things around…
  • Jamaica, NY: Total MCA up 16.4% year to date, as loans have risen 10.6% and average loan size is up 5.2% (good enough for 9th place on our average MCA growth list).
  • Pensacola, FL: This is the only one among the top 3 total MCA growth cities to show a decrease in loan units (-5.4%) so the 15.6% total MCA growth was driven entirely by a 22.2% average loan size increase.

We’ve heard many people say over the years that home prices are the single biggest driver of HECM volumes, and these lists underline that theme well.

  • National loan units are down -24.4% year to date through August
  • National average MCA is down -2.6% over the same period

All three cities above are seeing average MCA growth well above the national pace, accompanied by outright loan growth in the case of our top 2 and much smaller declines in Pensacola.

Check out the full report below by clicking on the image and learn more about what’s working now in reverse.

HECM Trends

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.