Year-over-year, reverse volume was up in October with strong metrics across metro areas, according to the most recent data released by the Department of Housing and Urban Development and analyzed by Reverse Market Insight.
But the good news will be short lived, RMI notes, as volume is expected to fall sharply as a result of program changes implemented on October 1.
Under “good news,” RMI reported this week that volume is up 17% over last year, with all 10 of HUD’s regions being up for the year.
“That is something we haven’t seen for a long time,” RMI writes in its report.
But a volume drop off in the measure of 50% is anticipated based on application data gathered by RMI, following principal limit factor cuts and product changes implemented in October.
“September application volume is probably going to exceed August, but the data we track internally shows that applications fell of a cliff in October with the new principal limit factors, and haven’t’ had any recovery,” RMI writes.
Charting year-to-date volume, the top three lenders currently hover within less than 1% of market share for 2013, and strong growth year over year. Security One Lending has closed 6,296 loans year to date this year, up from 3,202 loans in 2012. American Advisors Group, at No. 2 closed 6,109 loans to date, up from 3,059 last year; and Liberty Home Equity Solutions closed 6,018 loans this year to date, up from 3,743 last year.
View the top lenders report for October.
Written by Elizabeth Ecker