Reverse Mortgage Volume Increases 24% in October

Reverse mortgage volume was up 24% in October, coming in at 6,559 units according to data from Reverse Market Insight.

Overall origination volume for 2010 is still down 36% from 2009, but a bit better from the 38% from last month.

Wells Fargo remained the top reverse mortgage lender in November, endorsing 1,783 reverse mortgages, up from 1,075 units in October.  No. 2 MetLife increased retail HECM originations to 579 from October’s 302.  Rounding out the top 5 reverse mortgage lenders was Bank of America with 550 units, One Reverse Mortgage (338 units) and Generation (131 units).

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According to RMI, the number of active lenders increased by 14 but the number of new lenders originating reverse mortgages continues to fall and helped increase the number of endorsements per lender.

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To view a list of the top lenders, see the full report here.

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  • Hurray (or is it)? If one multiplies the number endorsed this month by 12, it is still less than the volume done in fiscal year 2010. Assuming a 4 month lag from origination to endorsement, the majority of these loans come from June 2010 which is a relatively slow origination month.
    Wells had an over 65% increase for the month. That is phenomenal. When you see that kind of growth in the industry retail leader that means the vast majority of us did not achieve 24%.
    Nonetheless, all of this statistical information is relatively unimportant if one is concerned about the acceptance of the Saver and signs of growth in the Standard. It will not be until late February that we begin to see reliable information surface.

  • Wells probably has more oversight than just about anyone in the industry according to one of their reps. There’s something to be said for doing it right- including their reps getting paid the same on LIBOR or Fixed so as to not seem over anxious on the increased comission opportunity the Fixed loan is bringing (see Generation’s prez comments a couple stories below this one).

    • I have intimate and particular insight into Wells Fargo reverse and I don’t know that “doing it right” is the best way to describe their reverse mortgage business practices. I think many others who are actually “doing it right” are taking business away from Wells. The size of their reverse mortgage workforce and the massive geographical reach of the Wells Fargo behemoth accounts for their numbers more than anything else.

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