Chart of the Day: Who Owns Almost 70% of New HECM Product Market Share?

Despite the Federal Housing Administration’s new reverse mortgage product being relatively new, data shows that two lenders are dominating the industry in terms of HECM Saver production by a wide margin.

According to data from the Department of Housing and Urban Development, Wells Fargo and MetLife own almost 70% of the market for the HECM Saver, only two months after its release.  From January to February 2011, Wells Fargo leads the industry with 187 HECM (40.83%) Saver endorsements, followed by MetLife with 125 units (27.51%).

The rest of the industry has endorsed 145 HECM Savers total.  Another interesting fact is the huge drop off after the top two lenders, who is the third largest HECM Saver lender?  PNC Reverse Mortgage will 11 units.

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Chart: HECM Saver Performance

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HECM Saver Performance

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  • While more than aware of the activity level at MetLife, the Wells Fargo percentage was very enlightening.

    It would be great if Elizabeth or you could interview those at Wells who are closest to this production to “hear” what they say about the product and the demographics of those getting them. It would also be valuable to hear if Wells is specifically marketing to the demographic profile or if their production is simply an alternative to the Standards.

  • I would be curious to see a breakdown of wholesale vs. retail Saver production. It certainly seems a better suited product for the retail operations than for brokers.

  • Wells is not charging any origination fee on the HECM LIBOR Saver, so it’s understandable why they own the market.Is their goal to drive others out of the business? Is it an unfair business practice to sell a product at a loss to eliminate the competition?

  • Wells is not charging any origination fee on the HECM LIBOR Saver, so it’s understandable why they own the market.Is their goal to drive others out of the business? Is it an unfair business practice to sell a product at a loss to eliminate the competition?

  • Wells is not charging any origination fee on the HECM LIBOR Saver, so it’s understandable why they own the market.Is their goal to drive others out of the business? Is it an unfair business practice to sell a product at a loss to eliminate the competition?

  • Wells is not charging any origination fee on the HECM LIBOR Saver, so it’s understandable why they own the market.Is their goal to drive others out of the business? Is it an unfair business practice to sell a product at a loss to eliminate the competition?

  • Wells is not charging any origination fee on the HECM LIBOR Saver, so it’s understandable why they own the market.Is their goal to drive others out of the business? Is it an unfair business practice to sell a product at a loss to eliminate the competition?

  • Wells is not charging any origination fee on the HECM LIBOR Saver, so it’s understandable why they own the market.Is their goal to drive others out of the business? Is it an unfair business practice to sell a product at a loss to eliminate the competition?

  • Wells is not charging any origination fee on the HECM LIBOR Saver, so it’s understandable why they own the market.Is their goal to drive others out of the business? Is it an unfair business practice to sell a product at a loss to eliminate the competition?

  • Is there anybody that can get the breakdown of how many of the savers were fixed rate vs. libor. If they are all or mostly fixed rates then this is not really news. Instead of talking the client into removing unneeded money on the std. fixed rate they are giving them the same loan with less unneeded money. Low net closing cost fixed loans have been avaliable for a while.

    • Thanks for replying Joe. That great that you are getting good penetration on the Saver ARM’s. At MetLife have you seen an increase in customers because of this product or does it seem like it’s more of an option that is being chosen?

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