Federal Housing Administration-insured reverse mortgage endorsements trended slightly downward in August despite a 10% uptick in application activity, according to a loan production report the agency issued this week.
Applications for a Home Equity Conversion Mortgage (HECM) loan numbered 8,165 in August 2013, a slight increase from the previous year and up nearly 10.4% from July. A large majority of the loan applications were for the HECM Standard, at just under 7,000.
The number of loans endorsed in August totaled 5,370, down from July’s 5,736. The HECM Standard led the way with 91.6% of all endorsed loans, but HECM for Purchase ticked up six basis points to 4% from the previous month.
By the end of August, the number of loans endorsed during the fiscal year totaled 55,364.
Access the FHA Production Report for August 2013.
Written by Alyssa Gerace