Retail Begins Rebound, Some Lenders See Triple-Digit Reverse Mortgage Growth

While reverse mortgage volume year-over-year is down substantially from 2011, endorsements were up 7.1% in August with several lenders counting big gains on an individual basis. 

Retail in particular saw the lion’s share of the gains and several lenders are counting 2012 as a triple-digit growth year, writes Reverse Market Insight in a report this week. 

The trend for some lenders is in strong contrast to the industry’s performance on the whole, which is down year-over-year and which many have forecast could be the lowest year for volume in recent memory. 

Advertisement

NewImage

Source: Reverse Market Insight

Noting the growth rates of several lenders in August and year-over-year, RMI points to American Advisors Group, which has seen a 107% gain year to date, more than doubling volume over July; Genworth Financial Home Equity Access, which is up 146% year to date and Security One Lending, seeing a 129% rise over the same time period. 

Other lenders also posted strong gains, according to the RMI report, with iReverse seeing an 89% increase over July, and “up-and-comers” Cherry Creek, GMFS and Maverick Funding representing growth stories. 

 View the RMI report

Written by Elizabeth Ecker

Join the Conversation (1)

see all

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

  • As advertised, this is the Year of the Lender for many lenders.  For the industry, fiscal 2012 was a far worse year than even fiscal 2010 with its larger volume drop and a higher percentage drop.  

    One major reason for this assessment is that fiscal 2012 came with a permanent loss of prospects due to the loss of the volume coming from branch foot traffic at B of A and Wells Fargo.  That source simply does not seem recoverable without other large banks replacing that source of prospects.

    Another significant reason is that the current loss is on top of the losses of both fiscal 2010 and 2011.  Our volume last fiscal year was less than one-half of the volume of either fiscal 2008 or 2009.

    The reason why some lenders had a great fiscal year is because they were able (i.e., prepared) to grab up more of the endorsement pie left vacant by the Big Two  than others.  

string(120) "https://reversemortgagedaily.com/2012/10/14/retail-begins-rebound-some-lenders-see-triple-digit-reverse-mortgage-growth/"

Share your opinion