HECM endorsements shrank -17% in July, as the increases in 10 year CMT rates from earlier in the year flow through the application/funding/endorsement cycle.
A look at the case numbers issued through June shows that 2/3 of the decline on that end of the process is from H2H refinance drops, but 1/3 is from a decline in new to reverse customers (“Equity Takeout” on the FHA report).
Back to our report, there were no regions immune to the decline with just 2 of 10 holding steady. Comparing to the recent high in March, some regions are holding up better than others:
- Southeast/Caribbean is off just -6.5% compared to -24.3% for the industry overall
- NY/NJ is down just -11.2%
- Southwest is down only -15.8%
Lenders were slightly better:
- Longbridge continued a strong run, rising 30.6% to 632 loans and a company record on this report
- Primary Residential is up 3,000% from last year’s first 7 months, at 186 loans
- Midwest Equity Mortgage is up 1,675% to 71 loans and #36
If you’re looking to grow your business as refi volume shrinks, let’s talk!
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