ReverseIQ Newsletters

Posts Tagged ‘reverse mortgage industry statistics’

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.

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.