ReverseIQ Newsletters

Posts Tagged ‘ReverseIQ’

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

Lender Rankings – HECM Originators Sep 2012

HECM volumes took it on the chin in September, dropping -10.6% from August. Retail (-11.1%) and Wholesale (-9.9%) fell by similar percentages, with the drop of First National Bank of Layton from Retail due to their previously announced exit likely made the difference between the two.

Continuing the trend of companies capitalizing on lender exits, Proficio jumped from 1 unit last month to a striking 53 in September, good enough for a 9th place ranking for the month (see page 4 of the report below). Several other companies also saw big increases:

  • Associated Mortgage Bankers has been coming on strong all year, growing 214% year to date. Their 12% growth this month is lower than months past, but good enough to join the top 10 in the number 8 slot.
  • Nationwide Equities continues to grow retail 60+% this month and year to date. They’re growing wholesale too and rank 25th on a combined basis over the past 12 months
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.