Shifting Forces – HECM Lenders May 2022

HECM endorsements shrank -7.7% in May to 5,783 loans. We have little doubt that the recent rise in 10 year treasury rates influenced that decline, even though case numbers issued (a proxy for HECM applications) show a ~10% increase in HECM to HECM refinance (H2H) volume in March. That’s the most recent case number data published by HUD and came as 10 year rates rose >50 bps in that month.

What’s more interesting about that report is the “Equity Takeout” category, HUD’s name for anything not H2H or HECM for Purchase, growing 28% in that same month. We’re still beating the drum for new reverses/”equity takeout” and the data is very much trending that direction.

Nine of the ten regions were down, with New England the exception this month, rising 1.6% to 130 loans.

Lenders were more resilient again, with 3 of the top 10 gaining:

  • RMF jumped 19.4% to 578 loans, their highest monthly total since July 2021
  • Mutual of Omaha rose 9.1% to 513 loans
  • FAR gained 5.9% to 647 loans, a new company high!

If you’re looking to grow your business as refi volume shrinks, let’s talk!

Click the image below for the full report.