Reverse Mortgage Applications Rise to Highest Level Since September 2009

The number of reverse mortgage applications increased 8.1% to 9,686 in August according to the latest report from the Federal Housing Administration.

While down 12.4% from the same period last year, the application totals for August are the highest since September 2009.


The run up in applications before the end of FHA’s fiscal year is normal and is likely to increase as reverse mortgage borrowers rush to complete the process before the Department of Housing and Urban Development lowers the principal limit factors in October.

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The total amount of FHA applications for the month was 200,907 with a significant rise in prior FHA refinance cases. This included 86,569 purchase transactions, 104,652 refinance cases and 9,686 reverse mortgage cases. Included in the refinance count were 55,103 prior FHA’s (46.9% over last month), and 49,549 conventional conversions. In addition, 39 H4H cases were included in the refinance total.

There were also 6,645 HECM’s insured in August and 6,175 were the traditional reverse mortgage type.

As of the end of August, FHA has 558,316 mortgages in a serious delinquency category, yielding a seriously default rate of 8.5 percent. This includes all mortgages in bankruptcy, in foreclosure and 90 days or more delinquencies.

So far this fiscal year 270,964 claims have been paid. The bulk of these were for loss mitigation retention (164,744) and property conveyance (87,807).

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  • 2545,rnrnWho are the elusive “they?”rnrnIn part you are right. The PLF tables were reduced permanently due to changes in the underlying assumptions based on experience. However, as home appreciation rates increase so should the PLFs.

  • Most of those generated in August will not be endorsed until next fiscal year which starts next week. Even if endorsements reach 80,000 for this fiscal year, that will still be more than 30% less than what was endorsed in the fiscal year ended 9/2009.rnrnWill next fiscal year be a better or worse endorsement year for standard HECMs? I hope Jeff Lewis and his political group are successful in dealing with the problem at OMB. Otherwise, it seems it will be another couple of fiscal years before we see a return of PLFs to levels even closely resembling those we had before 10/1/2009.

  • 2545,rnrnWho are the elusive “they?”rnrnIn part you are right. The PLF tables were reduced permanently due to changes in the underlying assumptions based on experience. However, as home appreciation rates increase so should the PLFs.

  • Most of those generated in August will not be endorsed until next fiscal year which starts next week. Even if endorsements reach 80,000 for this fiscal year, that will still be more than 30% less than what was endorsed in the fiscal year ended 9/2009.rnrnWill next fiscal year be a better or worse endorsement year for standard HECMs? I hope Jeff Lewis and his political group are successful in dealing with the problem at OMB. Otherwise, it seems it will be another couple of fiscal years before we see a return of PLFs to levels even closely resembling those we had before 10/1/2009.

  • 2545,rnrnWho are the elusive “they?”rnrnIn part you are right. The PLF tables were reduced permanently due to changes in the underlying assumptions based on experience. However, as home appreciation rates increase so should the PLFs.

  • Most of those generated in August will not be endorsed until next fiscal year which starts next week. Even if endorsements reach 80,000 for this fiscal year, that will still be more than 30% less than what was endorsed in the fiscal year ended 9/2009.rnrnWill next fiscal year be a better or worse endorsement year for standard HECMs? I hope Jeff Lewis and his political group are successful in dealing with the problem at OMB. Otherwise, it seems it will be another couple of fiscal years before we see a return of PLFs to levels even closely resembling those we had before 10/1/2009.

  • 2545,rnrnWho are the elusive “they?”rnrnIn part you are right. The PLF tables were reduced permanently due to changes in the underlying assumptions based on experience. However, as home appreciation rates increase so should the PLFs.

  • Most of those generated in August will not be endorsed until next fiscal year which starts next week. Even if endorsements reach 80,000 for this fiscal year, that will still be more than 30% less than what was endorsed in the fiscal year ended 9/2009.rnrnWill next fiscal year be a better or worse endorsement year for standard HECMs? I hope Jeff Lewis and his political group are successful in dealing with the problem at OMB. Otherwise, it seems it will be another couple of fiscal years before we see a return of PLFs to levels even closely resembling those we had before 10/1/2009.

  • 2545,rnrnWho are the elusive “they?”rnrnIn part you are right. The PLF tables were reduced permanently due to changes in the underlying assumptions based on experience. However, as home appreciation rates increase so should the PLFs.

  • Most of those generated in August will not be endorsed until next fiscal year which starts next week. Even if endorsements reach 80,000 for this fiscal year, that will still be more than 30% less than what was endorsed in the fiscal year ended 9/2009.rnrnWill next fiscal year be a better or worse endorsement year for standard HECMs? I hope Jeff Lewis and his political group are successful in dealing with the problem at OMB. Otherwise, it seems it will be another couple of fiscal years before we see a return of PLFs to levels even closely resembling those we had before 10/1/2009.

  • 2545,rnrnWho are the elusive “they?”rnrnIn part you are right. The PLF tables were reduced permanently due to changes in the underlying assumptions based on experience. However, as home appreciation rates increase so should the PLFs.

  • Most of those generated in August will not be endorsed until next fiscal year which starts next week. Even if endorsements reach 80,000 for this fiscal year, that will still be more than 30% less than what was endorsed in the fiscal year ended 9/2009.rnrnWill next fiscal year be a better or worse endorsement year for standard HECMs? I hope Jeff Lewis and his political group are successful in dealing with the problem at OMB. Otherwise, it seems it will be another couple of fiscal years before we see a return of PLFs to levels even closely resembling those we had before 10/1/2009.

  • Most of those generated in August will not be endorsed until next fiscal year which starts next week. Even if endorsements reach 80,000 for this fiscal year, that will still be more than 30% less than what was endorsed in the fiscal year ended 9/2009.rnrnWill next fiscal year be a better or worse endorsement year for standard HECMs? I hope Jeff Lewis and his political group are successful in dealing with the problem at OMB. Otherwise, it seems it will be another couple of fiscal years before we see a return of PLFs to levels even closely resembling those we had before 10/1/2009.

    • 2545,rnrnWho are the elusive “they?”rnrnIn part you are right. The PLF tables were reduced permanently due to changes in the underlying assumptions based on experience. However, as home appreciation rates increase so should the PLFs.

  • It is nice to be optimistic but they (the government) are not going to giving the PLF back to where they were before 10/2009. That is like saying sub-prime market will be back.
    But let’s just say you are correct when home appreciation increase. Home appreciation is not going anywhere as a Nation for 10+ years. Sure market by market things may increase but not enough to reverse the PLF. Keep up the optimism and living in a dream world.

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