The Federal Housing Administration made revisions to its future Home Equity Conversion Mortgage (HECM) volume projections, including estimates for performance of the HECM Saver over the next five years. Adjusting its revisions down, FHA now takes a more conservative stance on HECM volume in 2012—and beyond.
The Department of Housing and Urban Development announced the new projections based on its annual actuarial study of its Mutual Mortgage Insurance Fund, released Tuesday.
Previously, FHA projected HECM endorsements for 2012 would reach 88,000 units; an increase from 2011 volume, which totaled 74,000. In its annual actuarial review of the Mutual Mortgage Insurance Fund, FHA now estimates that 2012 will see 71,420 FHA-backed reverse mortgage loans, with an uptick not seen until 2013. Volume in 2013 is projected to reach nearly 88,000 loans, with the number continuing to increase through 2018.
Written by Elizabeth Ecker