Through June, HECM endorsements are 5.5% above last year’s levels, reports the latest Reverse Market Insight Industry Trends newsletter. Despite signs of significant growth in some areas, and a slightly better year-to-date showing compared to last year, RMI “fully expects” to see endorsements decline by the end of the year.
While the majority of year-to-date state growth rates rest between below 25%, some states, including North and South Dakota, Minnesota, and Iowa, are standing out as their growth rates range between 52-62%. These same four states showed positive trends in the last RMI industry report, with Minnesota’s rate increasing from the previous month.
Smaller volume states are generally growing at a faster rate than states with larger volumes, says RMI. This is in contrast to the 10 states with the highest endorsement rates, where the top two states, California and Texas, grew 6.4% and 14.3%, respectively. Considered all together, the top states posted a growth rate of just 5%, slightly below the national rate.
Notably, only 35% of the 50 states, plus Puerto Rico and Washington, D.C., are below the national growth rate.
North Carolina, with a 46.3% growth rate, New Jersey, at 20.6% and Pennsylvania, at 30.9%, are states to look out for as they’ve posted significant volume increases since 2010, with all three having endorsed at least 1,000 loans to date.
Struggling states include Maryland and Florida, both with decreases of 22% or more, showing a marginal improvement from the previous month’s losses of about 23%. Illinois dropped off the top 10 list since May, when it had a 25% loss in endorsement volume; Washington now comes in at #10 in terms of volume, with a 2.3% decline.
View RMI’s June Industry Data and Trends Report here.
Written by Alyssa Gerace