Wholesale origination channels saw the vast majority of reverse mortgage growth in February, with retail channels shrinking across the industry, a report today from Reverse Market Insight finds.
While endorsements during the month of February were up just 5%, the number of brokered loans to wholesale lenders grew more than 15% with retail endorsements falling near 3%. The February trend represents a bigger industry picture with wholesale having gained 58% since October with retail down 5%.
Source: Reverse Market Insight
“This is the second month in a row we’ve seen TPOs (wholesale) outperforming direct lenders (retail) and the third month in the past four,” wrote RMI in the report. “Even more interesting, all three have come in growth months for wholesale, whereas in the past year it was the lesser victory of declining less than retail.”
The number of wholesale loans has “surged” from 1,612 loans in October to 2,547 in February, according to RMI, representing a “significant” bounce back from recent months when wholesale declined significantly and retail led overall industry sales.
Written by Elizabeth Ecker