Even though September HECM endorsements were down 3.7% to 5,590 compared to the previous month, a few reverse mortgage lenders have risen to the top as “clear winners” in terms of monthly numbers since Bank of America’s exit, notes the most recent Reverse Market Insight newsletter.
While numbers overall are lower than last year on the volume side, says John Lunde, president of RMI, Metlife, Genworth and Security One come out near the top given their dramatic jumps since the first quarter; Wells Fargo’s exit hasn’t really affected these numbers yet, he adds.
Source: Reverse Market Insight, 2011
The number of active lenders also decreased somewhat but has appeared to bottom out in the low 200’s for the past few months, so most of the impact from the Federal Housing Administration’s lender approval changes is already apparent in that figure, says Lunde.
Despite the overall downturn in HECM endorsements, seven out of 10 regions increased in September; the four highest volume markets dropped 335 units, while the bottom six increased 118 units.
Northwest/Alaska had the largest unit volume increase at 33 units, or 12%, while Rocky Mountain had a slightly higher percentage increase, up 12.6% and 29 units. However, three of the biggest regions—Southeast/Caribbean, Southwest, and Mid-Atlantic—had negative monthly growth.
View the newsletter here.
Written by Alyssa Gerace