Reverse mortgage volume ticked up in September after a “dismal” month of August, however, loan endorsements are still tracking down about 6% year-over-year, according to the latest endorsement data analysis by Reverse Market Insight.
In September, the Federal Housing Administration endorsed 3,762 reverse mortgages, up about 16% from August’s total. Of that total, American Advisors Group posted more than 1,000 endorsements, with One Reverse counting 395 loans and Liberty Home Equity Solutions at 372 loans in the No. 2 and No. 3 production spots, respectively.
“It’s likely that we’re seeing the increases in applications since Q2/April translating into fundings later in Q2 and through Q3 that are turning into Q3/September endorsements,” says John Lunde, president and co-founder of Reverse Market Insight.
While production still still trending down year-over-year, the current data could signal a leveling off through year-end, Lunde says.
“The size of decline last month and bounce back this month is probably more noise than anything else,” he says. “I’d expect to see upper 3 to low 4 range in thousands of endorsements each month through year end.”
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Written by Elizabeth Ecker