Fixed Effects – HECM Lenders August 2013

HECM endorsements for August declined -6.5% to 5,382 loans. July’s total was increased by HECM Standard fixed rate volumes working through the pipeline, so we’re likely seeing a reset to a lower level given weakness in funding volumes starting in July. There is a 2 month lag time from funding to endorsement for most loans, so we’d expect to see additional weakness in September but some rebound in Q4 from loans coming in ahead of 10/1 HECM program changes.

Much of the decline in August was from Pacific/Hawaii and Southwest, which together accounted for 80% of the national drop in loan volume. Four of the ten regions squeaked out a small increase in volume, led by Southeast/Caribbean growth of 3.3%.

Among lenders, 3 of the top 10 bucked the downtrend and several others saw big declines:

  • American Advisors Group turned last month’s big jump intro a trendline by building further on the largest monthly total in the industry
  • One Reverse had the largest percentage increase at 8.4% despite AAG further widening their lead over ORM’s fourth ranked position
  • Liberty Home Equity Solutions continues to charge hard for the top spot in their third straight month topping current leader Security One/RMS

Please click the image below for lender rankings and more in the full report.