Finding Growth In A Downturn – Industry Trends June 2011

As we’ve previously noted, HECM endorsements year to date through June are running 5.5% above last year’s level, but we fully expect to see that reverse into a decline by year end. Despite that somewhat dreary prospect, it’s always worth trying to find the opportunities for volume and growth no matter what volume environment we’re in.

It’s sometimes easier to see where the bright spots are for our industry by looking at a map, rather than numbers in a table. The heatmap chart above comes from page 3 of Industry Trends showing YTD HECM growth rates. What stands out immediately is that growth is in the middle of the country, namely Minnesota, the Dakotas and Iowa, along with Mississippi further down.

Looking at the full list of growth by state shows very clearly that the smaller volume states are generally growing faster than large states, which is underlined by just 18 (35%) of the 52 states (+DC and Puerto Rico) being below the national growth rate.

If you’re looking for that magic combination of states with size and growth, North Carolina,Pennsylvania and New Jersey fit the bill as all have at least 1,000 loans year to date and 20%+ growth from 2010. The full report drills down to counties, cities and even zip codes, so make sure to click on the image below to download the full pdf.

Housekeeping Notes:

  • The Retail Leaders report will be re-named “HECM Lenders” to better identify it as the ranking of HECM Lenders closing loans under their own FHA approval. Lender volume presented on this report includes third party originations (TPO) of any company not FHA approved under their approved sponsor lender.
  • The Wholesale Leaders report will appear for the last time next week, and be known thereafter as “HECM Originators” to identify it as the best source of rankings of all companies originating HECM loans, regardless of FHA approval status

Click on the image below to view the full Industry Trends report for this month.

Industry Trends