February is a short month every year, which also typically means fewer HECMs endorsed. Last month was no exception, dropping -20.7% to 1,821 loans, but the size of that drop suggests more than the short month excuse was to blame.
Given that the prior two months were both subpar as well, overall industry weakness continues to remain a concern, and the short shutdown early in the month is another possible reason, but it also brings to mind a larger issue that non-HECM reverse mortgage loans are nibbling at the edges of HECM volume more directly these days than ever before.
Unfortunately, comprehensive data on that impact not unpublished so anecdotal accounts and theories are where we remain.
On the regional side, not a single area overcame the overall decline:
- NY/NJ fell the least, declining -1% to 100 loans
- Midwest also held up better, dropping -3.3% to 174 loans
- All other regions fell at least -11.4%, with one sinking -37.4%
The top 10 lenders were also universally negative:
- Finance of America dropped the least, losing -8.5% to finish with 364 loans
- Longbridge sank -9% to 304 loans
- The remaining 8 lenders fell between -15.9% to -49.6%
Click the image below for the full report.
