Reverse Mortgage Applications Fall, HECM Saver Gains 120%

The number of reverse mortgage applications fell 10.6% in January, but the month posted a 120% increase in HECM Saver endorsements over last month, according to data released this week by the Department of Housing and Urban Development.

January posted a seasonally-adjusted rate of 1,450,900 single-family mortgage applications overall, which represents the lowest January estimate since January 2007, partly attributable to strong storms across the country, according to the Federal Housing Administration report accompanying the data.

HECM endorsements totaled 6,464, down 1.4% from December 2010. Of all FHA endorsements, 117 were HECM for Purchase, and 165 were HECM Saver loans. HECM Saver endorsements more than doubled, from 75 total in December. January marks the fourth month of the HECM Saver program, which launched Oct. 1, 2010.

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The total proportion of reverse mortgage closings relative to total mortgage closings was 5.4%, a slight increase over the proportion last year, which was 4.8%.

Total endorsements for purchase and refinancing were down 29% and 19.3%, respectively, over totals from January 2010.

To view the full application data for January, click here.

Written by Elizabeth Ecker