Reverse Mortgage Applications Rise Again, Have We Turned the Corner?

NewImage.jpgThe Federal Housing Administration is reporting that reverse mortgage applications were up 10.4% in April, coming it at 8,169 units during the month.  April marks the third straight month over month increase in applications and is a good sign that lower costs for consumers are helping to drive demand.

Despite the number of applications being down 40% from the same period last year, the industry has been quietly optimistic for the last couple of months even though it’s facing more regulation and the potential for another principal limit reduction for FY 2011.  With applications continuing to increase, the data confirms that business is improving a bit.

Looking at a chart from RM Insight displaying the last three years of endorsement volume, numbers have yet to catch up even though applications are increasing.  Since endorsement reports from HUD trail a couple months behind actual origination dates, many are hopeful we will see a bump in volume soon.

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During April, the industry endorsed 5,511 HECMs, down 5.3% from March.  The only increase in business came from the HECM for purchase, which up 26.3% from March and 583.6% from the same period in 2009.

The total number of applications for FHA mortgage insurance was 215,578 during April, consisting of 150,935 purchase cases, 56,474 refinance applications as well as 8,169 reverse mortgage applications said the agency.

FHA Outlook Report

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  • Cynic,rnrnHow goes it with you today. Your point is well taken and on target as far as I am concerned.rnrnThe pull through ratio is the statistic that will be most important or the endorsements, what ever you call it, we are saying the same thing..rnrnWe are still finding the values coming in low. Also the appraisal issue has created problems. We never know who the appraiser is and in many cases we find out appraisers are not located in the area of the property. This just adds to the problem of getting accurate values.rnrnWhat you say about the number of applications not being as meaningful as a measuring tool for projected endorsements is right. Good comment Cynic, have a good day.rnrnJohn A. Smaldone

  • The question is, is the gap actually widening between the number of applications originated and HECMs endorsed? Last November, the increase in that gap was briefly discussed in San Diego at the NRMLA Convention. It was thought that the gap would narrow after the start of this calendar year. If that widening trend has continued, the number of applications taken may no longer be as meaningful in measuring the growth of the HECM industry as it truly once was.

  • Cynic,rnrnHow goes it with you today. Your point is well taken and on target as far as I am concerned.rnrnThe pull through ratio is the statistic that will be most important or the endorsements, what ever you call it, we are saying the same thing..rnrnWe are still finding the values coming in low. Also the appraisal issue has created problems. We never know who the appraiser is and in many cases we find out appraisers are not located in the area of the property. This just adds to the problem of getting accurate values.rnrnWhat you say about the number of applications not being as meaningful as a measuring tool for projected endorsements is right. Good comment Cynic, have a good day.rnrnJohn A. Smaldone

  • The question is, is the gap actually widening between the number of applications originated and HECMs endorsed? Last November, the increase in that gap was briefly discussed in San Diego at the NRMLA Convention. It was thought that the gap would narrow after the start of this calendar year. If that widening trend has continued, the number of applications taken may no longer be as meaningful in measuring the growth of the HECM industry as it truly once was.

  • Cynic,rnrnHow goes it with you today. Your point is well taken and on target as far as I am concerned.rnrnThe pull through ratio is the statistic that will be most important or the endorsements, what ever you call it, we are saying the same thing..rnrnWe are still finding the values coming in low. Also the appraisal issue has created problems. We never know who the appraiser is and in many cases we find out appraisers are not located in the area of the property. This just adds to the problem of getting accurate values.rnrnWhat you say about the number of applications not being as meaningful as a measuring tool for projected endorsements is right. Good comment Cynic, have a good day.rnrnJohn A. Smaldone

  • The question is, is the gap actually widening between the number of applications originated and HECMs endorsed? Last November, the increase in that gap was briefly discussed in San Diego at the NRMLA Convention. It was thought that the gap would narrow after the start of this calendar year. If that widening trend has continued, the number of applications taken may no longer be as meaningful in measuring the growth of the HECM industry as it truly once was.

  • Cynic,rnrnHow goes it with you today. Your point is well taken and on target as far as I am concerned.rnrnThe pull through ratio is the statistic that will be most important or the endorsements, what ever you call it, we are saying the same thing..rnrnWe are still finding the values coming in low. Also the appraisal issue has created problems. We never know who the appraiser is and in many cases we find out appraisers are not located in the area of the property. This just adds to the problem of getting accurate values.rnrnWhat you say about the number of applications not being as meaningful as a measuring tool for projected endorsements is right. Good comment Cynic, have a good day.rnrnJohn A. Smaldone

  • The question is, is the gap actually widening between the number of applications originated and HECMs endorsed? Last November, the increase in that gap was briefly discussed in San Diego at the NRMLA Convention. It was thought that the gap would narrow after the start of this calendar year. If that widening trend has continued, the number of applications taken may no longer be as meaningful in measuring the growth of the HECM industry as it truly once was.

  • Cynic,rnrnHow goes it with you today. Your point is well taken and on target as far as I am concerned.rnrnThe pull through ratio is the statistic that will be most important or the endorsements, what ever you call it, we are saying the same thing..rnrnWe are still finding the values coming in low. Also the appraisal issue has created problems. We never know who the appraiser is and in many cases we find out appraisers are not located in the area of the property. This just adds to the problem of getting accurate values.rnrnWhat you say about the number of applications not being as meaningful as a measuring tool for projected endorsements is right. Good comment Cynic, have a good day.rnrnJohn A. Smaldone

  • The question is, is the gap actually widening between the number of applications originated and HECMs endorsed? Last November, the increase in that gap was briefly discussed in San Diego at the NRMLA Convention. It was thought that the gap would narrow after the start of this calendar year. If that widening trend has continued, the number of applications taken may no longer be as meaningful in measuring the growth of the HECM industry as it truly once was.

  • The question is, is the gap actually widening between the number of applications originated and HECMs endorsed? Last November, the increase in that gap was briefly discussed in San Diego at the NRMLA Convention. It was thought that the gap would narrow after the start of this calendar year. If that widening trend has continued, the number of applications taken may no longer be as meaningful in measuring the growth of the HECM industry as it truly once was.

    • Cynic,

      How goes it with you today. Your point is well taken and on target as far as I am concerned.

      The pull through ratio is the statistic that will be most important or the endorsements, what ever you call it, we are saying the same thing..

      We are still finding the values coming in low. Also the appraisal issue has created problems. We never know who the appraiser is and in many cases we find out appraisers are not located in the area of the property. This just adds to the problem of getting accurate values.

      What you say about the number of applications not being as meaningful as a measuring tool for projected endorsements is right. Good comment Cynic, have a good day.

      John A. Smaldone

  • Cynic,rnrnHow goes it with you today. Your point is well taken and on target as far as I am concerned.rnrnThe pull through ratio is the statistic that will be most important or the endorsements, what ever you call it, we are saying the same thing..rnrnWe are still finding the values coming in low. Also the appraisal issue has created problems. We never know who the appraiser is and in many cases we find out appraisers are not located in the area of the property. This just adds to the problem of getting accurate values.rnrnWhat you say about the number of applications not being as meaningful as a measuring tool for projected endorsements is right. Good comment Cynic, have a good day.rnrnJohn A. Smaldone

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