New expert services for Servicing Oversight and Portfolio/Asset Management. Learn More.

HECM Originators – August 2022

HECM endorsements rose 16.3% in August, with wholesale/brokers (25.3%) outperforming retail/direct (8.8%) substantially.

Eight of the top ten lenders were up on the month – although it’s very likely they all declined in September on the same basis…

  • Fairway led the charge, jumping 65.5% to 293 loans
  • Longbridge was just behind, increasing 53.1% to 1,447 loans – the first time in years we’ve had anyone but AAG in the top spot for even a single month!
  • Liberty and RMF both gained 32-33% to finish in a tight race for #5

We’ve also been closely monitoring the case numbers issued report from HUD and August brought some encouraging news:

  • Equity Takeout cases issued (new reverses that are neither purchase nor refinances) rose to 4,015 – the second highest level this year behind only March. That’s a positive indication that high home prices and inflation concerns are overcoming higher interest rates to drive strong appeal in the product.
  • H2H refinance case numbers rose slightly to 1,054 – still well off their peak a year earlier and expected to decline further
  • Purchase (H4P) matched the highest total of the year at 233. Way smaller than it should be but maybe a more balanced market is cracking the door open to unfamiliar loan options like HECM that can step in when buyers are otherwise looking at payments driven higher by 7% forward mortgage rates?

Several originators more than doubled in the month and show impressive growth year to date:

  • Crosscountry leaped 500% to 24 loans in August, up 164% YTD
  • Amerifirst Financial increased 275% in August and 172% YTD

If you’re still looking for more efficiencies in your rate sheet process, check out our new Pricing Platform!

Check out the full rankings on pages 3 and 4 of the full report below by clicking on the image.