The number of reverse mortgage applications fell 38.8% in October, coming in at 8,249 units according to data released the the Department of Housing and Urban Development (HUD). The drop was expected after the number of applications spiked prior to HUD lowering the principal limits for the HECM program. While the drop is significant, it’s 40% better than the 5,892 applications from October 2009.
Total applications for FHA came in at 175,421 during October, down 31.5% from the month before.
Endorsements for reverse mortgages came in at 5,279 units during October with a max claim amount of $1.3 billion according to the report.
Since October is the start of the fiscal year, the report also shows HUD projections for FY 2011. For FHA’s reverse mortgage program, the agency projects there will be 80,000 applications and 75,000 endorsements with a max claim amount of $18.7 billion. These are lower than totals for FY 2010, which came in at 79,106 endorsements with a max claim amount of $21.1 billion.
The projections are also different than the 85,217 units included in the actuary report released earlier this week.
To view a larger version of the chart, see here.