HECM Applications Rise 17% in June, Saver Rebounds

HECM applications saw a substantial increase in June, while endorsement data for the month showed a strong boost for HECM Saver endorsements, nearing 9% of all endorsements, after falling short in the past two months.

Applications totaled 8,755 in June, seeing a 17% increase from 7,473 applications in May, according to the latest Federal Housing Administration housing outlook. During the month of June, the application total fell just 3.7% short of its prior-year total.

For HECM Saver endorsements, also tracked in the most recent data available, the outlook is stronger than in the past two months. In June, FHA endorsed 524 HECM Savers, posting a more than 43% increase over its May total of 365 Savers.

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The HECM for Purchase also gained in June, recording 146 endorsements during the month, up more than 50% from 96 Purchase loans in May and 101 in June 2010.

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To date, FHA has received 72,718 HECM applications in fiscal year 2011, ending September 30. FHA has projected 80,000 HECM applications total for FY 2011.

View the June Outlook report from HUD.

Written by Elizabeth Ecker

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  • This was not good news.  Year over year especially with the last minute push at Wells to get all loans in before the end.  What the year over year number indicates is the market as a whole is still shrinking.  This batch of applications will be the endorsements for October 2011. 

    Month over month it is great news and June Saver endorsement numbers were great.

    We have yet to face a financial assessment underwrite or the possible lowering of the lending limit.  If the FHA Case Number assignments are this low with a big application month from Wells, what will next month look like?  Many industry leaders apparently expected much better FHA Case Number assignment numbers for June.

    So the question is, can the endorsement numbers increase significantly in the midst of this housing Depression?  Any estimates on total endorsements for next fiscal year?

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