Lowest Reverse Mortgage Volume Since 2005, Top Lenders Through May 2010

After three months of an increase in reverse mortgage applications, volume continues to slide.  Reverse mortgage endorsement volume for May came in at 4,551 units, the lowest number since September of 2005 according to data from Reverse Market Insight.

Overall year to date volume is 30,540 endorsements, a decline of 39% from the same period last year. 

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

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  • Endorsement volume for May was 4,551 units, the lowest number we’ve seen since September, 2005.
  • Year to date volume is 30,540 endorsements, a decline of 39% from the same period last year.
  • On a competitive basis, the active lender count is down 26% from 2009 to 1,733 lenders.
  • This probably understates the decline; we fully expect that a good number of originators that had an endorsement in the early part of the year are likely out of the business. If things don’t pick up a bit in California and the rest of the Pacific/Hawaii region, we could see the Mid-Atlantic area sneak into the second spot (at least on a monthly basis).
  • Only 3 of the top 10 lenders grew volume in May. Generation, Bank of America and Metlife each grew more than 10%, although all are still down significantly from their December volumes.

May 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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  • While we will not see the impact on endorsement numbers from increased closed originations due to lower upfront costs and no servicing fee set asides until at least the June endorsement numbers, this voume of endorsements is extremely disappointing. Things like foreclosures for taxes and insurance need to be delayed until the HECM market recovers.

  • I'm in California working with Seniors who have large existing mortgages. I'm trying to figure out why so many seniors are reluctant to take advantage of the fixed rate loan that I do with no closing costs. It seems like the poor real estate market and uncertain economic situation have combined to make it difficult for them to make any decisions.

    • Good question, thanks for asking. The difference is caused by HUD's figures being based on the federal government fiscal year (Oct-Sep) rather than calendar (Jan-Dec).

      We generally publish using calendar year since most people prefer that. You'll notice that figures for all companies are dramatically lower in our numbers than the fiscal year comparables – in this case Metlife had more volume Oct-Dec than One Reverse Mortgage and that makes the difference in fiscal year rankings.

  • Good question, thanks for asking. The difference is caused by HUD’s figures being based on the federal government fiscal year (Oct-Sep) rather than calendar (Jan-Dec).nnWe generally publish using calendar year since most people prefer that. You’ll notice that figures for all companies are dramatically lower in our numbers than the fiscal year comparables – in this case Metlife had more volume Oct-Dec than One Reverse Mortgage and that makes the difference in fiscal year rankings.

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