Volume Jumps 12% During August, Top Reverse Mortgage Lenders

Reverse mortgage lenders endorsed 6,645 HECM units during August, up 12.6% from July.  It’s the third consecutive month over month increase in volume and signals things could be turning around after an extremely challenging first half of 2010.

Overall volume for 2010 is still down 37.7% from the same period last year, but individual lender performance is improving.  According to Reverse Market Insight, the average number of monthly endorsements per lender (almost 9) is at its second highest number in the last two years.

Additionally, the number of new active lenders finally hit bottom, with almost 40 reverse mortgage lenders entering the business during August.  Check out the commentary and report below for more insight into the August 2010 data.

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  • Endorsement volume continued to climb, coming in at 6,645 units for the month, up 12.6% from July.
  • YTD volume was 48,390 endorsements, a decline of 37.7% from the same period in 2009.
  • It appears as if we have formed a bottom in the “New Lenders by Month” chart.  Despite this, the Endorsements/Lender number is at its second highest number in the past two years.
  • Year to date, the number of lenders active in the industry is down 28%.

August 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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  • wealthone,rnrnYou have to ask yourself: Would HUD be doing this if OMB was using the HUD home appreciation rates? If your answer is yes, how do you get there? If your answer is no, then we need to complain to the White House.

  • August was the busiest month I’ve had in the biz. Unfortunately its mostly due to the economy- folks just don’t have the access to cash they once had. Credit cards or regular home refinancing has been harder to obtain for some of the folks I’ve been working with. For HUD to decrease benefits and raise monthly MIP is a travesty for this group.

  • Since endorsement is a function of HUD and not the lenders, these numbers tend to reflect HUD activity not that of the lenders. I do not mean to imply there is no significance to this trend because it definitely is positive.rn
    What is somewhat unexpected is the percentage of loans from lenders who have experienced lost volume this calendar year; to August 31st, it is approximately 70% of the total volume but last year it was over 89%. Why that is surprising is that last year we had gone from lending limits determined county by county as of 10/31/2008 to a national lending limit of $417,000 and then in February 2009 to $625,500 — but PLFs were NOT reduced until 10-1-2009. So why was the percentage higher last year over this?

  • wealthone,rnrnYou have to ask yourself: Would HUD be doing this if OMB was using the HUD home appreciation rates? If your answer is yes, how do you get there? If your answer is no, then we need to complain to the White House.

  • August was the busiest month I’ve had in the biz. Unfortunately its mostly due to the economy- folks just don’t have the access to cash they once had. Credit cards or regular home refinancing has been harder to obtain for some of the folks I’ve been working with. For HUD to decrease benefits and raise monthly MIP is a travesty for this group.

  • Since endorsement is a function of HUD and not the lenders, these numbers tend to reflect HUD activity not that of the lenders. I do not mean to imply there is no significance to this trend because it definitely is positive.rn
    What is somewhat unexpected is the percentage of loans from lenders who have experienced lost volume this calendar year; to August 31st, it is approximately 70% of the total volume but last year it was over 89%. Why that is surprising is that last year we had gone from lending limits determined county by county as of 10/31/2008 to a national lending limit of $417,000 and then in February 2009 to $625,500 — but PLFs were NOT reduced until 10-1-2009. So why was the percentage higher last year over this?

  • wealthone,rnrnYou have to ask yourself: Would HUD be doing this if OMB was using the HUD home appreciation rates? If your answer is yes, how do you get there? If your answer is no, then we need to complain to the White House.

  • August was the busiest month I’ve had in the biz. Unfortunately its mostly due to the economy- folks just don’t have the access to cash they once had. Credit cards or regular home refinancing has been harder to obtain for some of the folks I’ve been working with. For HUD to decrease benefits and raise monthly MIP is a travesty for this group.

  • Since endorsement is a function of HUD and not the lenders, these numbers tend to reflect HUD activity not that of the lenders. I do not mean to imply there is no significance to this trend because it definitely is positive.rn
    What is somewhat unexpected is the percentage of loans from lenders who have experienced lost volume this calendar year; to August 31st, it is approximately 70% of the total volume but last year it was over 89%. Why that is surprising is that last year we had gone from lending limits determined county by county as of 10/31/2008 to a national lending limit of $417,000 and then in February 2009 to $625,500 — but PLFs were NOT reduced until 10-1-2009. So why was the percentage higher last year over this?

  • wealthone,rnrnYou have to ask yourself: Would HUD be doing this if OMB was using the HUD home appreciation rates? If your answer is yes, how do you get there? If your answer is no, then we need to complain to the White House.

  • August was the busiest month I’ve had in the biz. Unfortunately its mostly due to the economy- folks just don’t have the access to cash they once had. Credit cards or regular home refinancing has been harder to obtain for some of the folks I’ve been working with. For HUD to decrease benefits and raise monthly MIP is a travesty for this group.

  • Since endorsement is a function of HUD and not the lenders, these numbers tend to reflect HUD activity not that of the lenders. I do not mean to imply there is no significance to this trend because it definitely is positive.rn
    What is somewhat unexpected is the percentage of loans from lenders who have experienced lost volume this calendar year; to August 31st, it is approximately 70% of the total volume but last year it was over 89%. Why that is surprising is that last year we had gone from lending limits determined county by county as of 10/31/2008 to a national lending limit of $417,000 and then in February 2009 to $625,500 — but PLFs were NOT reduced until 10-1-2009. So why was the percentage higher last year over this?

  • wealthone,rnrnYou have to ask yourself: Would HUD be doing this if OMB was using the HUD home appreciation rates? If your answer is yes, how do you get there? If your answer is no, then we need to complain to the White House.

  • August was the busiest month I’ve had in the biz. Unfortunately its mostly due to the economy- folks just don’t have the access to cash they once had. Credit cards or regular home refinancing has been harder to obtain for some of the folks I’ve been working with. For HUD to decrease benefits and raise monthly MIP is a travesty for this group.

  • Since endorsement is a function of HUD and not the lenders, these numbers tend to reflect HUD activity not that of the lenders. I do not mean to imply there is no significance to this trend because it definitely is positive.rn
    What is somewhat unexpected is the percentage of loans from lenders who have experienced lost volume this calendar year; to August 31st, it is approximately 70% of the total volume but last year it was over 89%. Why that is surprising is that last year we had gone from lending limits determined county by county as of 10/31/2008 to a national lending limit of $417,000 and then in February 2009 to $625,500 — but PLFs were NOT reduced until 10-1-2009. So why was the percentage higher last year over this?

  • wealthone,rnrnYou have to ask yourself: Would HUD be doing this if OMB was using the HUD home appreciation rates? If your answer is yes, how do you get there? If your answer is no, then we need to complain to the White House.

  • August was the busiest month I’ve had in the biz. Unfortunately its mostly due to the economy- folks just don’t have the access to cash they once had. Credit cards or regular home refinancing has been harder to obtain for some of the folks I’ve been working with. For HUD to decrease benefits and raise monthly MIP is a travesty for this group.

  • Since endorsement is a function of HUD and not the lenders, these numbers tend to reflect HUD activity not that of the lenders. I do not mean to imply there is no significance to this trend because it definitely is positive.rn
    What is somewhat unexpected is the percentage of loans from lenders who have experienced lost volume this calendar year; to August 31st, it is approximately 70% of the total volume but last year it was over 89%. Why that is surprising is that last year we had gone from lending limits determined county by county as of 10/31/2008 to a national lending limit of $417,000 and then in February 2009 to $625,500 — but PLFs were NOT reduced until 10-1-2009. So why was the percentage higher last year over this?

  • Since endorsement is a function of HUD and not the lenders, these numbers tend to reflect HUD activity not that of the lenders. I do not mean to imply there is no significance to this trend because it definitely is positive.rnrnWhat is somewhat unexpected is that percentage of loans from lenders who have experienced lost volume this calendar year to date was approximately 70% of the total volume but last year it was over 89%. Why that is surprising is that last year we had gone from lending limits determined county by county as of 10/31/2008 to a national lending limit of $417,000 and then in February $625,500 — and PLFs had not been reduced.rnrn

  • August was the busiest month I’ve had in the biz. Unfortunately its mostly due to the economy- folks just don’t have the access to cash they once had. Credit cards or regular home refinancing has been harder to obtain for some of the folks I’ve been working with. For HUD to decrease benefits and raise monthly MIP is a travesty for this group.

    • wealthone,rnrnYou have to ask yourself: Would HUD be doing this if OMB was using the HUD home appreciation rates? If your answer is yes, how do you get there? If your answer is no, then we need to complain to the White House.

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