Reverse Mortgage Volume Drops 7.4% in June

Dropping from the previous month’s growth, both reverse mortgage retail volume and wholesale/broker volume were down in June, at 9% and 5.2% declines respectively, the latest Reverse Market Insight (RMI) report shows.

Total home equity conversion mortgage (HECM) endorsement growth was down 7.4%, though more recent data is signaling an upswing in loan volume.

“The good news is that we are seeing applications trend slowly but steadily upward for the past few months in our repository data, and lenders are also starting to roll out new jumbo reverse products,” RMI says in the report.

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Previously, retail showed a 12.2% increase in May for the retail side, while wholesale/broker volume saw a 2% rise.

While overall HECM endorsement growth was down in June, some lenders saw more volume growth than in previous months.

Liberty Home Equity Solutions bounced back to 496 loans from 371 in May; RMS/Security One showed the highest volume since February at 482 loans; and One Reverse rose to 425 loans in one of the steadiest displays among major lenders over the past 12 months.

Trailing 12-month endorsements for retail were 32,117, and 24,258 for wholesale units.

Read the full report here.

Written by Cassandra Dowell

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  • Cassandra,

    Your endorsement information in two recent articles is so inaccurate that it is bogus.

    For example above you write “Year-to-date endorsements for retail were 32,117, and 24,258 for wholesale units.” But the graph you obtained that information from was for the 12 trailing months ended June 30, 2014 and showed a total of 56,375 endorsements in that period. You claim that the information is for six months when in fact it is for twelve.

    When describing the AAG roll out of their proposed proprietary reverse mortgage you state: “Reverse mortgages totaled 18,000 this year through June, down from 58,000 in the same period of 2009.” Yet the total endorsements for the six month period ended June 30, 2014 was 27,440 (that is over 50% greater than the number you use).

    As to your AAG article please see http://rmdaily.wpengine.com/2014/08/24/bloomberg-jumbo-reverse-mortgages-on-the-upswing/

    Incorrect data leads to incorrect conclusions, i.e., they are false and misleading. Specifically you state that the year-to-date endorsement totals are over 56,000 and within hours just 18,000. If you had said 25,000 and later 29,500, that would not be so objectionable but that is not the case.

    If you believe that I am wrong, please describe how!!!

  • People make mistakes, Cynic. Cheer up buddy buddy 🙂 Everyone gets it! Industry is down. We have to thank this great group for allowing us to have this read daily. It keeps a small niche group closer which is important for many reasons. You might cause one of them to just leave from your tone alone. Not being cynical.

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