Wholesale reverse mortgage volume was down 25.8% during May, marking the fourth consecutive month over month decline according to data from Reverse Market Insight.
May volume was the lowest in five years and brokers bore the brunt of declining volumes with only 2,058 units says RMI.
MetLife was the top wholesale lender in May with 371 units, followed by Bank of America (349 units) and Urban Financial (337 units). Rounding out the top 5 was Generation Mortgage (317 units) and Genworth (105 units) according to data from the US Department of Housing and Urban Development.
“In many ways today’s report illustrates what has long been considered a truism in the mortgage industry: wholesale is much faster to grow, but retail is where companies create lasting franchise value,” said RMI. “We’re all in favor of a healthy industry with both retail and wholesale channels, but the trends right now are increasingly showing strain in the broker/wholesale side of the industry.”