ReverseIQ Newsletters

Posts Tagged ‘mic report’

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.

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

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.