While the HECM for Purchase program hasn’t taken off as quickly as many in the reverse mortgage industry would’ve liked, data from Reverse Market Insight shows it’s on the right track.
Starting in January 2009, only 18 HECM for purchases were endorsed, totaling $6.4 million of loans. However, by the end of 2009, volume had increased to 130 units and $40.1 million according to data from the US Department of Housing and Urban Development. Check out the chart below.
“The market grew nicely over the year even as principal limits were reduced in October, although it’s very early to tell whether HECM Purchase is more or less affected by those changes,” said RM Insight.
Head over to their website to see where the majority of the volume is coming from. Check it out here.