Shifting Tides – HECM Originators August 2012

August HECM endorsements bounced back up 7.1% from what we now know was only the first exceedingly low volume month in Q3. We also see that the bounce was entirely in the Retail/direct channel of the business, whereas Wholesale/TPO business was essentially flat from July to August.

Looking back to last August, it’s clear that the exit of major brands like Wells Fargo, Bank of America and Metlife is having an impact on the channel mix of the industry. August makes a particularly opportune moment to look back at the channel mix, as August 2011 was the last month with a full share from Wells Fargo’s retail presence.

As you can see from the chart above, Retail/direct endorsement volume is down -35% in the past 12 months, whereas Wholesale/TPO volume is down just -19%. Nothing to be proud of in either case, but there’s no doubt which result hurts less.

Among lenders gaining from the shifting tides, these companies are heading to San Antonio next week with celebration in mind. All rankings below can be found on page 4 of the report linked below.

Top 10 (excluding wholesale):

  • American Advisors Group took the top originator title for August after more than doubling from July and is up 107% year to date
  • Genworth popped 37% from last month and 146% YTD
  • Security One grew 44% in August and 129% from last year
  • iReverse grew 89% for the month and 5% from Jan-Aug 2011

Up and coming:

  • Cherry Creek was down slightly on the month (-8%) but up 307% from last year
  • GMFS was up 49% last month and 145% YTD
  • Maverick Funding grew 55% in August to 51 loans, after not having a single loan in the first 8 months of last year

Find your company in the trailing twelve month rankings (page 3) or August rankings (page 4) by clicking the image below to access the report.