HECM endorsements shrank rose 2.7% in June, bucking the headwinds from rapidly rising 10 year treasury rates so far, to finish with 5,937 loans.
We also saw the May edition of FHA’s Production Report released, showing a -56.3% drop in HECM to HECM refinance case numbers issued from March to May. Coupled with a -21.8% decrease in “Equity Takeout” (FHA’s category for HECMs which are neither refis nor purchase loans, what we usually call “New”), we can probably expect some overall volume decline in the near term.
The growth in this same statistic for March that we cited last month is looking more like a one-off blip than a trend at this point, unfortunately.
Back to our report, we saw 4 of the 10 regions gain loans this month:
- Mid-Atlantic jumped 17.3% to 244 loans
- Southeast/Caribbean grew 8.8% to 1,124 loans
- Pacific/Hawaii rose 7.5% to 2,194 loans
Lenders also saw 4 of the top 10 rise:
- Longbridge bounced back in a big way, rocketing 54.6% to 484 loans
- Hightech increased 18.4% to 103 loans
- Mutual of Omaha leaped 7.9% to 575 loans – a new company record!
If you’re looking to grow your business as refi volume shrinks, let’s talk!
Click the image below for the full report.