The Federal Housing Administration’s latest Outlook Report shows that reverse mortgage applications continue to slide. In January, the agency reported it received 5,805 applications for reverse mortgages (HECM), down 16.2% from the prior month and 54.2% lower than the same period in 2009.
Reverse mortgage applications weren’t the only product showing a decrease in volume. According to FHA, it received 126,043 total applications in January, a sharp decrease from the 243,511 it received during January 2009. FHA says the drop in volume may be in part because of its tightened underwriting standards from streamline refinancing and the severe weather conditions the country experienced during December and January.
In January the industry endorsed 7,628 HECMs, consisting of 6,911 traditional HECMs, 113 HECM for purchase loans, and 605 HECM refis. Total maximum claim amounts came in at $2.1 billion in January, down from $2.3 billion in December.