Arizona is Bright Spot in Reverse Mortgage Volume Slump

Endorsements for Home Equity Conversion Mortgages (HECMs) may have hit a 14% annual decline in June on a national basis, but regionally speaking, Arizona has so far been a diamond in the rough, according to the latest data from Reverse Market Insight.

In total, the number of HECM endorsements topped 27,648 loans in June, a 14.1% decrease compared where volume sat during the same month a year ago, when it was 32,202 units, notes RMI in its HECM Trends June 2014 report.

While eight of the top 10 states posted declines in endorsements, Arizona trumped California (4.6%) as the only other state to report an increase with 32.2% loan growth in the first half of the year compared to its pace during the same period last year. Alternatively, California posted the highest volume with 4,711 loans, while Arizona posted 976 for the sixth ranked spot on the top-10.


When ranked geographically by city, Phoenix just made the cut falling in at the ninth overall spot with 145 loans through June 2014, a 107.1% increase compared to the same period in the previous year and the highest overall growth among the top-10 cities.

The Grand Canyon State’s performance in June is further highlighted by a 46.8% volume increase seen in Maricopa County (#2), along with the fourth-highest zip code, Sun City’s 85375, which reported 42 loans from January to June 2014—an average of seven per month in the zip code alone, RMI noted.

Arizona’s two largest metros of Phoenix (#1) and Tucson (#3) each were among the top ten cities for total maximum claim amount growth, growing a little more than $18,000 and $8,500 to $33,069 and $25,266, respectively.

On the originations side, the number of active originators thinned out considerably in the first half of 2014 compared to the first half of last year, dropping 13.8% to 589, compared to the 683 unique origination companies in January through June 2013.

Written by Jason Oliva

Join the Conversation (1)

see all

This is a professional community. Please use discretion when posting a comment.

  • The good news in the story is nothing more than an attempt to deflect away from basic bad news. If Arizonia was expected to have 10,000 endorsements for 2014, give them the headlines but the real expectation is about a 2,000 HECM endorsement total for all of Arizona for 2014.

    There are only two states with populations over 65 of 4 million or more. The first is California with its 5 million and Florida with its four million. While California is the most populous state overall, Florida is number four with a lot of anticipation that by 2015 its population will only be exceeded by Texas and California.

    Seniors (i.e., state residents over 65) compose about 19% of the Florida population and about 13% of the California population. Yet despite its low percentage of seniors, California has a huge disproportionate number of endorsements compared to other states with significantly higher percentages of senior residents within their states.

    The story is actually the continuing “rich soil” in California with its supply of high value homes.

string(100) ""

Share your opinion