Endorsements for Home Equity Conversion Mortgages (HECMs) reached their lowest level of the past 12 months this April, according to the latest report from Reverse Market Insight (RMI).
HECM endorsements tallied 4,170 loans in April, down 9.7% from the previous month.
But American Advisors Group demonstrated a recent record for monthly volume, nearing 1,200 loans and more than doubling the volume of Liberty Home Equity Solutions, which took the No. 2 spot for volume during April.
April’s data is in line with previous RMI reports that predicted volume declines would continue in the following months. In March, endorsements fell 10.6% from February and 20.9% when compared on a year-over-year basis.
“We’ve been suggesting for a couple months now that endorsements were headed lower based on application and funding volumes since the FHA changes on 9/30/2013 and now we’re here,” states RMI.
Volume declines were widespread across eight of the 10 regions tracked by RMI, with the Pacific/Hawaii and Rocky Mountain areas as the only exceptions.
The Pacific/Hawaii tallied the most endorsements for the month with 926 loans, a 4.3% increased compared to the 888 the region recorded in March.
Meanwhile, the Rocky Mountain region posted a monthly gain of 8% in April, reporting 216 loans.
For the top-10 HECM lenders, April fared as a better month for volume gains for only four companies: American Advisors Group, One Reverse Mortgage, Associated Mortgage Bankers and Open Mortgage.
The real story there, according to RMI, was AAG hitting 1,194 loans during the month—rocketing the company to the number one spot and more than doubling the next lender, One Reverse, which reported 409 loans.
Written by Jason Oliva