The increase in reverse mortgage endorsements in September spread the growth virtually identically across the retail and wholesale channels, the latest Reverse Market Insight report shows.
Total endorsement growth reached 15.8% through September compared to the previous month, and retail endorsement growth reached 15.6% while wholesale endorsement growth reached 15.9% during the same time period.
Lenders’ portfolios also reveal notable upticks in performance.
Liberty Home Equity Solutions‘ retail and wholesale volume more than doubled, up 132% to 552 loans and the highest level since April on the back of a doubling of retail loans.
Also showing impressive growth was AAG, which grew 36% in September to 1,148 loans; and Generation Mortgage Company perked up 26% as they close out their pipeline of fundings to be endorsed.
And the numbers for October reveal increased HECM growth, John Lunde, president of Reverse Market Insight tells RMD.
“We already know that October came in at 4,852 loans which was a big increase from September,” Lunde says. “In that environment, I’m expecting we’ll see big gains from both channels, perhaps with stronger growth in the wholesale side as it typically has more volatility than retail.”
And as far as November/ December volume, Reverse Market Insight predicts the industry will see around 4,000 loans per month to perhaps a bit more, Lunde says.
“That’s a little lower than October, but still relatively conservative compared to the rest of 2014, so retail probably does a bit better if we’re close to those numbers and wholesale does better, relatively, if we’re significantly above that mark,” he says.
Access the latest report here.
Written by Cassandra Dowell