July’s Biggest Wholesale Reverse Mortgage Winners

Growth in the wholesale reverse mortgage channel continued for the second consecutive month in July, contributing to sizeable gains for some of the industry’s top lenders.

On an industry-wide basis, total Home Equity Conversion Mortgage (HECM) endorsements fell 5.1% in July to 5,025 loans, dragged down by a 9.3% decline in the retail channel, according to the latest industry data compiled by Reverse Market Insight.

But while retail took a dive following nearly 20% growth in the prior month, the wholesale channel also experienced a stark comedown, though still seeing some modest growth in July—increasing just 0.3% during the month, following a 29.6% gain in June.

Advertisement

As the industry awaits the true impact of the Financial Assessment on endorsement volume, in the meantime several top-10 reverse mortgage lenders have seen substantial growth in their wholesale channels in July over the past 12 months.

In terms of wholesale unit growth, Reverse Mortgage Funding (RMF) leads the way with 1,994 more loans reported in the 12 months trailing July than the company posted for the same period a year ago.

With 128 active wholesale brokers as of July, RMF’s overall HECM endorsement volume totaled 3,300 loans over the course of the past 12 months from August 2014 through July 2015. Of this total amount, the company’s wholesale production represented 2,423 loans during this time period.

July was also a big month for Live Well Financial, which saw its wholesale production rocket 164.4% compared to its 12-month trailing total in July 2014. Live Well’s total in July of 1,758 wholesale loans was 1,093 units higher than the 665 unit tally the company reported in July 2014.

American Advisors Group (AAG), the largest reverse lender by volume overall, also posted significant growth in the wholesale channel.

The company, whose volume mix leans heavily on the retail side (76%), reported wholesale volume of 3,478 units through July, up 23.2% compared to a year ago. This tally is the third-largest among the top-10 lenders—behind Urban’s 5,088 wholesale volume and Liberty’s 3,643 unit count—and represents an increase of 654 loans in this channel compared to the prior 12-month trailing period following July 2014.

Seeing some of the largest wholesale growth in July among the top-10 lenders was Home Point Financial Corp., whose 645 loan count through July was 207.1% higher (435 loans) than the 210 loans the company did under the Maverick Funding Corp. banner.

Written by Jason Oliva

Join the Conversation (3)

see all

This is a professional community. Please use discretion when posting a comment.

  • Yesterday afternoon, HUD gave a webinar on financial assessment. Midway through the third slide, the following is stated: “Through August 31, 2015, HUD had issued 23,246 case numbers since the effective date. Of these case numbers 3,918 loans have closed and 1,749 have been endorsed.”

    By its wording it is difficult to say how many of the applications were endorsed before September 1. If the endorsements are as of August 31, 2015, that means endorsement is going slightly faster than expected. 63% of endorsements which will come from the first 35 calendar days of applications receiving case number assignments (CNAs) and subject to financial assessment.

    The total CNAs for the four plus months following financial assessment is the worse CNA total for any four month period ended August 31, since August 31, 2004. It is 14.3% worse than the four month period ended August 31, 2005 when endorsements were just 43,131. It is also 22.5% less than the four months ended August 31, 2014, our worst fiscal year for endorsements in the last ten years including the current fiscal year (ending mid next week).

    It seems endorsement wise, the first quarter of fiscal 2016 will have less than 11,000 endorsements. Once total endorsements for the quarter ended December 31, 2015 are closer to being established, then it will be time to put it into historical perspective.

    Let us hope that the conversion rate is much better than we have recently seen it so that endorsements are larger for the next quarter than indicated above.

    • Where do you get the time for this stuff, James? First you’ve got to do all the research – then you’ve got to write it down … I have to read your articles 4 or 6 times before I understand what you’re saying. Where do you get the time?

      • Mr. Denton,

        At one time, it took a day or more rounding up data and doing whatever analysis was appropriate.. Today, I have gathered up historical data since program implementation due to others filling in some of the gaps. So each month the data only has to be updated so that it can analyzed, compared, and reported on.

        Today, data analysis can take 1 to 3 hours; however, from that comes several comments throughout the month. If my writing skills matched my basic math skills, you would have far less problems understanding what I write. I apologize for that; it is a weakness.

string(93) "https://reversemortgagedaily.com/2015/09/23/julys-biggest-wholesale-reverse-mortgage-winners/"

Share your opinion