HECM endorsements jumped 11.1% to 2,392 loans in October, breaking out of what had been a very tight recent range of volume for the industry. This was undoubtedly helped by lower 10 year CMT rates ahead of last month’s first Fed Funds rate cut in over four and a half year. Unfortunately, this key rate has jumped significantly since that cut which could hurt future months of HECM endorsement volume.
This month’s good news on endorsements played out on the regional level as well, with 9 of the 10 gaining ground:
- Great Plains remains the smallest region by volume, but leaped 40.7% last month
- Rocky Mountain was just behind, rising 39.3% to 241 loans
- Midwest gained 34% to finish with 209 loans
- Southwest rose 22.2% to 270 loans
The largest lenders were more mixed, as a group rising at a slower than industry pace of 10.5% and just half of them increasing volume on the month:
- Longbridge rocketed 58.6% to 349 loans, just 5 loans off their recent high in May
- Goodlife added 50% to 129 loans
- Fairway gained 31% to 114 loans
Click the image below for the full report.
