Reverse Mortgage Applications Decline for Fifth Consecutive Month, Worst Over?

Reverse mortgage applications fell 4.9% in January 2012 to 5,795 according to the latest report from the Department of Housing and Urban Development.

While the number of applications fell, it’s far worse than the 18.9% decline in December 2011, which came in at 6,092. But it’s still the fifth consecutive month of application declines for the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM) program.

Chart: Reverse Mortgage Application Trends


Reverse Mortgage Application Trends

Powered By: iCharts | create, share, and embed interactive charts online

Year-over-year, January applications fell 21.6% from 7,396 applications in 2011.

Despite applications being down, endorsements came in at 5,175 during the month, up 4,9%. All other categories of the HECM program also performed well, with HECM for purchase volume up 47.7% and the number of Saver loans increasing by 12.2%.

View the report.

Join the Conversation (1)

see all

This is a professional community. Please use discretion when posting a comment.

  • Will total endorsements reach 30,000 for the first six months of this fiscal year or 60,000 for the entire fiscal year?  For the last three fiscal years the first half of the fiscal year has produced more endorsements than the last half.  That would be a great trend to break but as a realistic prognosticator, my estimate is still 58,500 for this fiscal year.  I still like the number used by FHA (84,000) its Outlook report much, much better.  

    Many of us will be watching the endorsement number for March but the real story is in the number of case number assignments for February (most likely reported at the end of this month) and the following three months.  Using the four month rule of thumb, very few applications which receive case number assignments after May 31 will be endorsed in this fiscal year.  So the applications which receive case numbers in the next 90 days will determine how bad this fiscal year will actually turn out to be.

string(121) ""

Share your opinion