Though first quarter reverse mortgage endorsements have largely declined nationally compared to year-ago levels, many cities are experiencing growing dollar volumes by the millions—most notably in California, according to the latest Reverse Market Insight data.
On a national scale, endorsements for Home Equity Conversion Mortgages (HECMs) are down 6.3% in the first quarter of this year when compared to what they were during the first quarter of 2013.
The volume downtrend for HECM endorsements slumped to a 12-month low in April, where volume declined 9.7% from the previous month.
Despite the quarter-over-quarter—as well as the monthly—dip in HECM volumes, RMI notes there are still some “sunny spots” where dollar volumes have grown substantially over the past year, though these areas appear to be largely concentrated in Western states, particularly California.
The state claims seven of the top-10 cities for total MCA growth, with San Diego leading the way with a $54.7 million increase in aggregate maximum claim amounts during the quarter, an $18.4 million jump from the same time last year.
California also swept the top-10 zip codes for total MCA growth, with Oceanside (92056) and Walnut Creek (94595) ranking #1 and #2, producing approximately $7.6 million and $7.8 million for the quarter, respectively.
Among the top-10 reverse mortgage lenders, American Advisors Group continued to hold down the top spot during the quarter with 1,870 loans year-to-date. In April alone, the company racked 1,194 loans.
One Reverse Mortgage finished the quarter at the number two spot with 1,233 loans, while RMS/Security One Lending rounded out the top-3 with 1,199 loans, respectively.
Access the RMI data.
Written by Jason Oliva