HECM endorsements saw a third monthly decline in May, shows the latest data from HUD, still surpassing endorsement totals from 2010, but following a similar downward trend as seen in the first half of last year.
Reverse Market Insight released the following chart last week noting the three-year endorsement trend, with this year’s year-to-date total through May showing an increase of 4.7% over 2010. Through May, the industry saw 31,948 HECMs endorsed.
In regional terms, California continues to occupy the top-state spot for reverse mortgages, while Texas has secured the second position with more than13% growth this year. Florida continues as the third-most HECM state, despite its loss of more than 23% volume.
RMI has reported in the past on diminished competition in 2011, and the number of active lenders in May continues to support that trend. With 389 active lenders in May this year, the number of active lenders has fallen nearly 40% from its May 2010 total of 629 lenders.
View RMI’s May report.
Written by Elizabeth Ecker