Reverse Mortgage Volume Continues to Fall, Top Lenders in April

Reverse mortgage endorsement volume for April came in at 5,511 units, down 5.3% from March according to data from Reverse Market Insight. Overall year to date volume is down just under 38% from 2009 at 25,986.  Active number of lenders continued to slide 7% from March.

Below is a list of the top reverse mortgage lenders through April 2010. Be sure to take a look at the commentary and report which goes into more detail below.

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  • Monthly endorsement volume continues to decrease, with units coming in at 5,511 for the month, vs 5,822 in March.
  • Year to Date volume is down just under 38% from 2009, at 25,986 units.
  • Declines are hitting all regions of the country, with all HUD regions down within a range of 23% – 44%.
  • Drilling deeper, only two of the HUD Field Offices having growth over 2009 (Houston and New Orleans).
  • There are 1,658 active lenders thus far in 2010, a 25% decline from the same period in ’09.

April 2010 MIC Report

Market statistics and report sample provided by Reverse Market Insight, the leading source of market intelligence in the reverse mortgage industry. For more information about RMI and to purchase the full MIC report with additional key performance indicators and market statistics, please visit our website at www.rminsight.net

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  • Historically, the first and second calendar quarters of each year are good times for origination. Knowing that endorsements run several months behind the time in which the related applications were taken, the April results are very enlightening. The endorsement numbers for the next five months will be indicative of where we truly are.

    For some originators, production is increasing. Some of that is due to less competition and less effective television advertising. With media rates increasing due to mid year political campaigning, no doubt the television advertising trend will continue through the end of October. For many originators, marketing budgets have plummeted with many looking for more cost effective ways to gain prospects.

    As to revenues, many of us have been greatly encouraged by the premiums the secondary market is now providing on fixed rate HECMs. It would seem with some of that additional profit being plowed back into the product through lower upfront costs and lower interest rates, the downward trend in endorsements should be turning around by June. Time will tell.

    Even though many of us look at application numbers, unfortunately the gap between the percentage difference between number of applications and the number of endorsements seems to be growing. That is not a good trend. Endorsements numbers are where the rubber meets the road.

  • Historically, the first and second calendar quarters of each year are good times for origination. Knowing that endorsements run several months behind the time in which the related applications were taken, the April results are very enlightening. The endorsement numbers for the next five months will be indicative of where we truly are.rnrnFor some originators, production is increasing. Some of that is due to less competition and less effective television advertising. With media rates increasing due to mid year political campaigning, no doubt the television advertising trend will continue through the end of October. For many originators, marketing budgets have plummeted with many looking for more cost effective ways to gain prospects. rnrnAs to revenues, many of us have been greatly encouraged by the premiums the secondary market is now providing on fixed rate HECMs. It would seem with some of that additional profit being plowed back into the product through lower upfront costs and lower interest rates, the downward trend in endorsements should be turning around by June. Time will tell.rnrnrnEven though many of us look at application numbers, unfortunately the gap between the percentage difference between number of applications and the number of endorsements seems to be growing. That is not a good trend. Endorsements numbers are where the rubber meets the road.

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