Four Top-10 Reverse Mortgage Lenders Double Business in 2012

Four of the top six reverse mortgage lenders have grown year-to-date volume by 100% or more, with some seeing a near 150% increase in volume this year. 

These “winners,” according to a Tuesday Reverse Market Insight report, include American Advisors Group, Genworth Financial, First National Bank of Layton and Security One Lending. 

They are showing some benefits now from the exits of Wells Fargo and Bank of America last year, RMI writes, with Home Equity Conversion Mortgage (HECM) endorsements rising 5% in April with the increase about the same between the wholesale and retail dichotomy. 

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“These aggregate numbers don’t show a significant spread between the channels, but as always there is a lot of movement among individual companies in the rankings,” writes RMI. 

For American Advisors Group, the increase was 127% in April from the first four months of 2011. For Genworth, the increase was 101%; FNB Layton saw 149% growth year-over-year and Security One picked up 120%. 

While many have gained market share in light of the big bank exits, there is likely to be even more to gain as lenders see volume resulting from the MetLife exit in April. 

“They still have plenty of room in front of them from the Metlife exit,” says John Lunde, RMI co-founder and president. 

View the RMI report and lender rankings. 

Written by Elizabeth Ecker

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  • Congratulations to the management at the four lenders (although the results this year seems to be more like a land grab than a year of reward for those who have achieved anything other than survival.)  However, if we are to congratulate these four what are to say when volume falls flat or retracts next fiscal year?  Hopefully we will not have to address that next year but no one knows until we are deeper into this calendar year. 

    The problem is that the continuing decline in overall endorsements may mean that despite the loss of MetLife, many lenders may find their endorsement totals for next fiscal year lower than their total for this fiscal year.  Few analysts address this ongoing problem of decline because after almost three fiscal years, the subject of the decline is more unpopular than ever.
    Conference sessions would rather focus on the absurd like when will we see 100,000 endorsements again rather than when we will next see 70,000 endorsements in a single fiscal year.  The total of endorsements for the last twelve months is now less than 61,000 and there is no sign that there is anything in the works to keep endorsements from falling below 57,000 for this fiscal year.  What a thought, this fiscal year is likely to have less than 50% of the endorsements we saw for fiscal year 2009.

    While there is insufficient information to indicate which direction fiscal year 2013 is headed there is literally nothing indicating we will see marked improvement.  For some of us the demise of the MetLife reverse mortgage operations so far has been a real blessing, for others, nothing or even a loss.

    Right now lenders are fumbling from what is happening due to the loss of the Big Four.  Processing at some lenders is in overload with little sign of let up.  Once the increase has been rolled into current and expanded operations, a continuing decline will be felt throughout the industry but that is not the case for NOW.  By January lenders will have to be reminded that this fiscal year was their year.    

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