Three of the top ten states have about half—if not more—of their reverse mortgage market shares up for grabs thanks to Financial Freedom, Wells Fargo, and Bank of America exiting the industry, and this represents opportunities for lenders who remain, Reverse Market Insight’s ReverseIQ October newsletter reports.
Looking at endorsement volumes from October 2010 through March 2011, the last two quarters where the three lenders were fully represented, RMI examined their collective market share.
Source: Reverse Market Insight, October 2011 Reverse IQ Newsletter
Wells, Financial Freedom, and BofA took up 49.4% of the market share in California, the state with the highest reverse volume. That number inched past the halfway mark to 51.9% of sixth-ranked New Jersey’s market share, and shot up to 62% of North Carolina’s (ranked #10) share.
Additionally, there is likely to be significant volume still up for grabs in several of these top ten states for those that know where to look, says RMI, although the industry should expect to see volume decline in some of these states, especially North Carolina, due to market share concentrations.
Because of restrictive regulations and a market share that’s been dominated by exiting banks, there is big opportunity for lenders who are able to do business in North Carolina, but, RMI cautions, this could also mean lost opportunity for both consumers and the industry if there aren’t enough lenders available to serve that 62%.
View the October ReverseIQ Newsletter here.
Written by Alyssa Gerace