Endorsements for Home Equity Conversion Mortgages (HECMs) experienced a 24% boost in June as borrowers rushed to get applications ahead of the Financial Assessment’s late-April deadline—leading some states to achieve double-digit volume gains during the first half of the year, according to the latest analysis of industry data from Reverse Market Insight (RMI).
Thus far, year-to-date HECM endorsement volume in June is up 2.5% to 28,343 total units from where it was last year at this time. In 2014, year-to-date volume in June totaled 27,648 units, which represented a 14.1% decline from the comparable period in 2013.
“Pre-FA rush of borrowers is easily the biggest trend in June figures, which played out across the country,” said RMI President John Lunde.
As the broader reverse mortgage industry experienced such modest growth, some states, like Florida and California, posted high gains during the first six months of 2015 compared to this same period last year.
In Florida, 2,471 loans reported year-to-date in June signals a 26.1% increase over last year’s pace—the highest growth among the top-10 states as tracked by RMI.
“For Florida, we saw the highest volume level so far this year and it was just 8% refinances, so it’s likely the housing market recovery there, along with the large number of eligible households setting the table for the pre-FA rush,” Lunde said.
Meanwhile, California also continued to improve on its pace, rising 12.9% year-to-date in June to a total of 5,320 units, a count that still leads the top-10 states.
“In California, we’ve seen quite a bit of refinance activity and that trend held in June endorsements as well: 25% were refinances in June, although that is right in line for prior months this year,” Lunde said.
Texas also posted substantial growth, seeing unit count rise 8.9% to 2,137 loans compared to last year’s pace.
View the RMI data.
Written by Jason Oliva