California Dominates Top Places for Reverse Mortgage Volume Growth

Reverse mortgage endorsement volume in August hit its highest level since March 2013 at 5,750 loans. And while August was the last month to carry inflated pre-Financial Assessment volumes, the gains were widespread across the nation’s top producing states, according to the latest industry data tracked by Reverse Market Insight (RMI).

Year-to-date, Home Equity Conversion Mortgage (HECM) endorsements tallied 39,117 loans through August, reflecting an 11.8% increase over the comparable period last year (34,989).

Leading the way, California commands the largest number of reverse mortgage endorsements this year through August. The state’s 7,917 unit total through the first eight months of 2015 is 30.5% higher than where endorsement volume was in 2014 for the comparable period. With August in the books, California is generating nearly 1,000 per month on average, notes RMI.


Propelling the state is Los Angeles, which reported 412 loans year-to-date through August; along with San Diego and San Jose, which ranked among the top-10 cities with 279 and 193 units, representing increases of 18.7% and 35.9% over last year, respectively.

California was also home to four counties that posted double-digit endorsement growth through August, with Los Angeles County leading the way, rising 35.9% to 2,020 total loans. San Diego (778), Riverside (746) and San Bernardino (429) counties also had a strong showing, rising 17.5%, 51.9% and 40.2%, respectively.

In terms of other states posting big gains through August, Florida ranked second at the state level (35%), with Miami also coming in second among cities (15.2%). The Sunshine State was also home to the top zip code 32162, whose 124 loans were up 55% through August over last year.

View the latest RMI report.

Written by Jason Oliva

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  • Florida has proven again and again that a high percentage of seniors in the general population has little to do with HECM volume or growth. Why is that? We hear that California has this or that but what we do not have is the percentage growth in our senior population that is true of such places as Florida and Arizona; yet our HECM volume is high as well as its growth.

    • California has appreciating home value almost unrivalled compared to other states. Florida has recovered fairly well in most area’s however the majority of states are still going along like the economies growth…2 to 3%. Some are still in 2005 Home value ranges. The new guidelines don’t help most seniors who needs the reverse mortgage. Because if “they need” it…its likely too late.

      • JD,

        First, the places where we see the greatest growth in California is in areas where the average value of homes exceed the lending limit. So true available proceeds to home values are miserable.

        Second, Florida has never dominated the endorsement numbers in raw numbers or percentages except perhaps in the first or second year of the program. The value of Florida to the industry is nothing like California, now or at any time in the past.

        Why this has any relevance is due to the claims of Florida originators who demand to be treated as industry gurus. Florida is a good state for endorsements but other states have done almost as well; yet what state is like California when more seniors are leaving the state than moving to it?

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