Closing the Books – HECM Originators December 2011

December’s HECM Originators report brings us final 2011 rankings for both retail/broker/TPO originators and wholesalers, as well as the best view yet of how monthly rankings will fare in the brave new world post Wells and BofA (combined volume in single digits for December).

Overall endorsements were down -1.8% from November, with the entire decline coming from the TPO/Wholesale side of the industry turning in a -4.4% performance. This isn’t a big surprise considering that TPO volume consistently under-performed retail/direct since May.

What’s perhaps even more important as we continue in 2012 is the trend in applications. In the past we’ve focused on the monthly effects of changes to lending limits, principal limits and lender exits, but for this year end chart we’ve focused on the theme of Wells/BofA/FF exits in 2011.

Case numbers issued (we use this interchangeably with applications) dipped in December to the lowest level since January 2010, but if we exclude the impact of Wells/BofA/FF it tells a different story. December’s total is right between May and June figures for surviving lenders, raising the question whether higher volumes from Aug-Nov were just the result of applications shifting from the exiting lenders in a one time surge. It would be much more positive for the industry if survivors fill the distribution gaps left by exiting lenders over the next few months and generate higher application volumes, but December merits concern for less rosy scenarios playing out.

As with any good year end ranking list, this one is filled with many successful companies bucking the trend of a down market so be sure to check pages 3 and 4 for final 2011 results for your company.

Click the image below to access the full report:

HECM Originators