There’s opportunity for reverse mortgage lenders in states with low penetration and relatively few lenders per household, and Reverse Market Insight’s most recent HECM Trends newsletter points out a few such markets from data compiled through July 2011.
North and South Dakota and North Carolina are the top three states in terms of low penetration paired with a lower number of lenders per household, and although Louisiana, Mississippi, and Iowa have higher numbers of available lenders, they also provide opportunity in terms of penetration rate potential.
Source: RMI HECM Trends Newsletter, September 2011
When it comes to North Carolina, a state that has seen significant endorsement volume growth in the past three years, RMI president John Lunde says it’s one of only two top-10 states that has grown since 2007, with Texas as the other.
North Carolina has shown steady growth from 2008 through this year so far, sitting at #9 on the list of top 10 states for endorsement volume, with a 38.3% growth rate over last year. In fact, it’s the only top-10 state to have grown more in 2011 than in 2008, a peak year for many states.
Overall, the top 10 states have a 1.8% positive growth rate, with seven posting better numbers compared to last year. Only Florida, Maryland, and Illinois have lost ground, with all three falling more than 20%.
View RMI’s September HECM Trends newsletter here.
Written by Alyssa Gerace