Reverse Mortgage Applications Up in November, But Barely

Reverse mortgage applications received by the Federal Housing Administration rose to 7,508 in November, up 2.5% from October but down 8.6% year-over-year.

The increase represents the first monthly gain since August, and the lowest year-over-year decrease since June 2011, when applications declined 3.7% from their prior-year total, the FHA Housing Outlook for November shows.

Chart: Reverse Mortgage Application Trends

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Reverse Mortgage Application Trends

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Endorsements during November went up by a single endorsement over October, staying almost steady at 4,654, down almost 30% from November 2010. Saver endorsements saw a 10.7% decline.

FHA has received 14,831 HECM applications to date in Fiscal Year 2012.

View the FHA single-family outlook for November.

Written by Elizabeth Ecker

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  • While it is helpful to understand the trend in applications, the real meaning comes from when it is applied to the expected outcome for the year in estimated endorsement totals.

    Right now it looks like the calendar year 2011 will total less than 69,000 endorsements.  This is at least one-third less than industry leaders were claiming in late 2010 at the NRMLA National Convention in New Orleans.  How those individuals ever came up with those numbers when four months of “FHA Outllook” application activity indicated otherwise, is beyond the skill set of this writer to comprehend.

  • Just a few minutes ago HUD posted the total endorsements for December 2011.  The number was the lowest in three months but not by much, 4636 endorsements..  Total endorsements for the calendar year are less than 68,700 as The_Cynic and others of us anticipated.  The worst news is the continuing reduction in the conversion rate of applications which have case numbers into endorsements.

    While NCOA has attempted to address this as a good thing, their failure to address why it continues to drop leaves many questions as to their basic understanding of the problem.  Their response would have been valid to some degree if there was a sudden drop in the conversion rate which stayed relatively the same over the last 15 months or so.  That is not the case at all.  The overall rate just continues to sink.

    Calendar year 2012 needs to be the year our industry reacts and digs into the matter to find out why the trend continues or decides to passively live with the consequences.

  • Just a few minutes ago HUD posted the total endorsements for December 2011.  The number was the lowest in three months but not by much, 4,636 endorsements..  Total endorsements for the calendar year are less than 68,700 as The_Cynic and others of us anticipated.  The worst news is the continuing reduction in the conversion rate of applications from case number assignment into endorsement.

    While NCOA has attempted to address this as a good thing, their failure to address why it continues to drop leaves many questions as to their basic understanding of the problem.  Their response would have been valid to some degree if there was a sudden drop in the conversion rate which stayed relatively the same over the last 11 months or so; yet that is not the case at all.  The overall conversion rate from case number assignment to endorsement just continues to sink.

    Calendar year 2012 needs to be the year our industry reacts and digs into the matter to find out why the trend continues or decides to passively live with the consequences.

  • Just a few minutes ago HUD posted the total endorsements for December 2011.  The number was the lowest in three months but not by much, 4,636 endorsements..  Total endorsements for the calendar year are less than 68,700 as The_Cynic and others of us anticipated.  The worst news is the continuing reduction in the conversion rate of applications from case number assignment into endorsement.

    While NCOA has attempted to address this as a good thing, their failure to address why it continues to drop leaves many questions as to their basic understanding of the problem.  Their response would have been valid to some degree if there was a sudden drop in the conversion rate which stayed relatively the same over the last 11 months or so; yet that is not the case at all.  The overall conversion rate from case number assignment to endorsement just continues to sink.

    Calendar year 2012 needs to be the year our industry reacts and digs into the matter to find out why the trend continues or decides to passively live with the consequences.

  • Just a few minutes ago HUD posted the total endorsements for December 2011.  The number was the lowest in three months but not by much, 4,636 endorsements..  Total endorsements for the calendar year are less than 68,700 as The_Cynic and others of us anticipated.  The worst news is the continuing reduction in the conversion rate of applications from case number assignment into endorsement.

    While NCOA has attempted to address this as a good thing, their failure to address why it continues to drop leaves many questions as to their basic understanding of the problem.  Their response would have been valid to some degree if there was a sudden drop in the conversion rate which stayed relatively the same over the last 11 months or so; yet that is not the case at all.  The overall conversion rate from case number assignment to endorsement just continues to sink.

    Calendar year 2012 needs to be the year our industry reacts and digs into the matter to find out why the trend continues or decides to passively live with the consequences.

  • Just a few minutes ago HUD posted the total endorsements for December 2011.  The number was the lowest in three months but not by much, 4,636 endorsements..  Total endorsements for the calendar year are less than 68,700 as The_Cynic and others of us anticipated.  The worst news is the continuing reduction in the conversion rate of applications from case number assignment into endorsement.

    While NCOA has attempted to address this as a good thing, their failure to address why it continues to drop leaves many questions as to their basic understanding of the problem.  Their response would have been valid to some degree if there was a sudden drop in the conversion rate which stayed relatively the same over the last 11 months or so; yet that is not the case at all.  The overall conversion rate from case number assignment to endorsement just continues to sink.

    Calendar year 2012 needs to be the year our industry reacts and digs into the matter to find out why the trend continues or decides to passively live with the consequences.

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