Reverse Mortgage Endorsements Fall 19%, Sink to 2005 Level

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.

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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

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  • With less than 29,000 endorsements for the first six months of this fiscal year, fiscal 2012 may end up resulting in less than 60,000 endorsements.  Case number assignments through February 29, 2012 confirm this less than happy prediction.

    As to origination, there is less than 2 months to go before we have substantially all of the applications which will become endorsements in this fiscal year.  The case number assignments on all but a few of these applications will be released in the last part of June.  It is at that time, we will have the clearest picture about this fiscal year before September 2012 endorsement numbers are released (in less than six months).

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