The Federal Housing Administration is projecting that reverse mortgage endorsement volume will decline in 2010. It would be the first year over year decline the industry has experienced in at least a decade.
According to the report, FHA estimates the industry will endorse 106,875 HECMs during HUDs fiscal year 2010. Those numbers are about 7% lower than the 114,691 HECM endorsements in FY 2009.
Other interesting protections from the report:
- 3,420 HECM for purchases endorsed, up from 423 in FY 2009
- 7,268 HECM refinances, down from the 8390 in FY 2009
The report shows that there were only 5,892 applications taken in October which is the lowest in almost three years according to RM Insight. The numbers could be impacted by the rush in September due to the 10% reduction in principal limits.
Let us know what you think about HUD’s FY 2010 projections