Reverse mortgage endorsements fell 19% in March to 4,381 loans—the lowest volume since September 2005.
Data released this week by the Department of Housing and Urban development indicates this is the first time endorsements have fallen below the recent bottom seen in May 2010, wrote Reverse Market Insight in its latest analysis.
“It makes perfect sense given that case numbers issued in January fell to the lowers level since May 2005, but we’d also expect at least one more month of similarly low (and probably lower) volume before February’s bound in case numbers resuscitates endorsements a bit,” RMI writes.
February applications saw a 17% increase over January application totals, despite having fewer business days during the month.
The decline in March endorsements is broad-based, RMI writes, and is seen across regions as well as Top-10 lenders, with the exception of American Advisors Group, which saw a 28% gain and the second-highest total in the company’s history.
View RMI’s report.
Written by Elizabeth Ecker