Number of Reverse Mortgage Applications Up 8.8% says FHA

NewImage.jpgThe number of reverse mortgage applications rose 8.8% in June, coming in at 9,088 units according to the Federal Housing Administration.  June marks the fifth consecutive month over month increase in HECM applications.

As applications continue to rise, reverse mortgage volume should follow in the coming months.

In June, FHA insured 150,911 mortgages, totaling $26.4 billion.  Of those loans, 5,304 were reverse mortgages with a max claim of $1.3 billion, marking the fist increase in volume during 2010, up 16.5% from May.

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HECM for purchase saw an increase during the month as well, up 36% with 101 units.

As of June 30, 532,757 mortgages were at least 90 days or more in a delinquent status for a seriously default rate of 8.3%.

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  • I am very skeptical.

    Last year at the NMRLA Convention in San Diego it was announced that year-to-year HECM applications had risen substantially and from that it was conjectured that things this year might be as bad as was being speculated. Well, things are worse not better. Volume increases in applications are positive indications of possible future growth in increased fundings but I am no Pollyanna.

  • It is not surprising to know that the number of people applying for a reverse mortgage would increase as we are evidently facing a great deal of financial difficulties at this time. The global economic crisis affected a number of businesses and it might still take time for many people to get back on track.

  • It is not surprising to know that the number of people applying for a reverse mortgage would increase as we are evidently facing a great deal of financial difficulties at this time. The global economic crisis affected a number of businesses and it might still take time for many people to get back on track.

  • Applications might be up, but if the AMC driven appraisals keep coming in 10-15% below market value, it will be difficult to close the loans. At least I'm getting better at submitting appraisal dispute forms.

  • Applications might be up, but if the AMC driven appraisals keep coming in 10-15% below market value, it will be difficult to close the loans. At least I’m getting better at submitting appraisal dispute forms.

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