After experiencing a surging wholesale growth in June, endorsements for Home Equity Conversion Mortgages (HECMs) posted only a moderate increase in the channel for July, according to recent reverse mortgage industry data.
HECM endorsements overall fell 5.1% in July, but the channel was split more so than usual, notes Reverse Market Insight (RMI) in its most recent data release on HECM Originators July 2015.
While wholesale was up nearly 30% in June compared to May, in July the channel only grew 0.3% to 2,331 loans. Meanwhile, the retail/direct channel fell 9.3%, compared to a 19.9% increase in the prior month.
“That’s out of character for the typical pattern in which we see wholesale as more volatile than retail, but the real test comes when endorsement volumes are likely to fall (perhaps as early as September) due to Financial Assessment rules taking effect,” says RMI in its analysis of the June data.
As for lender activity, some originators saw significant growth during the month, including Reverse Mortgage Funding, which grew 34.6% to 393 loans in July to claim the fifth spot among the top-10 lenders.
Meanwhile, Cherry Creek Mortgage increased their total 32.7% to 146 loans during the month to continue what RMI notes is a solid four month growth trend that has seen the company more than double their March volume (72 loans).
Also posting notable gains during the month was Urban Financial of America, which jumped 23% to 764 loans—the company’s highest single month tally since July 2013.
View the RMI July report.
Written by Jason Oliva