Total Reverse Mortgage Volume Dips Nearly 5% in May

Total home equity conversion mortgage (HECM) endorsement growth fell -4.9% for the month of May, new data show.

Both retail and wholesale endorsement growth dropped in May, at -4.6% and -5.4%, respectively, according to the latest Reverse Market Insight (RMI) report.

But while some top 10 lenders showed declines, some winners emerged as well.

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Live Well Financial Inc. grew volume 30% to 299 loans—their highest monthly total in over a year, RMI data show. And One Reverse Mortgage LLC bucked the downward trend as well, growing 18% to 518 loan, positioning it in the second overall ranking of the month.

Outside of the top 10 lenders, several originators also bucked the falling HECM endorsement trend.

FirstBank grew 22.7% to 54 loans, High Tech Lending grew 29.7% to 48 loans and United Southwest Mortgage Corporation a.k.a All Reverse Mortgage jumped 45.5% to 32 loans.

Looking ahead, RMI President John Lunde tells RMD HECM endorsements pick up.

“June showed a solid increase in endorsements as borrowers rushed to get in before financial assessment implementation,” Lunde says, adding that typically brokers rise faster in a growth environment, so the upcoming data may reflect that trend as well.

Read the latest RMI report here.

Written by Cassandra Dowell

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  • It seems we are still desperate for good news. June may have had (and did have) much better results than May but one month of good production does not result in “a growth environment.”

    The endorsements for each month of the last quarter of fiscal 2014 were low enough that it is very possible that endorsement totals for the same months of this year may do better. Even though the endorsement numbers for September last year were low, with the expected advent of a significant number of HECMs which have gone through financial assessment being endorsed in September 2015 and few that have not, there is a belief that the endorsements for September 2015 will start at least 13 straight months in which endorsements in 2015 and 2016 will be lower than those same months twelve months earlier.

    So for a few months there is a reasonable chance we are entering a growth environment but looking just four months into the future, few believe that is what we will be facing.

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