September was a harbinger of several conclusions; the end of summer, end of the third quarter, and the end of a three-month volume run of Home Equity Conversion Mortgage (HECM) endorsements inflated by the pre-Financial Assessment rush. But while endorsements dropped nearly 19% on a monthly basis in September, year-over-year volume levels were more uplifting in several markets nationwide, according to recent industry data.
Year-to-date in 2015, industry volume through September is running 13% higher than last year’s first nine months at 43,786 units, according to the most recent report from Reverse Market Insight. Even so, RMI forecasts that the industry is expecting to see the lowest monthly levels of the year in wake of the Financial Assessment implementation.
The September drag aside, nearly all of the top-10 states for endorsement growth in terms of unit count posted volume gains year-to-date (YTD) in September 2015 compared to the first nine months of 2014.
California saw the largest hike in its YTD September volume with 9,075 units, up 35.6% from the comparable period last year. Meanwhile, Florida and Colorado also saw growth of a similar magnitude, rising 35.7% and 30.3% to 3,746 and 1,067 units, respectively.
Pennsylvania was the only state among the top-10 whose YTD September endorsement count decreased compared to last year, falling 8.7% to 1,589 units. Similarly, Philadelphia was among the top cities posting a decline as well, with endorsements down 31.9% YTD in September compared to last year’s levels.
The top cities for endorsement growth mirrored the state rankings, insofar as Los Angeles and Miami topped the list with volumes rising 48.6% and 14.9%, respectively.
Washington, D.C. followed suit with 339 units YTD in September, which is 22.4% higher than this period last year.
Alongside Philadelphia, Chicago was the only other city among the top-10 to post a decline, seeing its endorsement volume dip 17% to 249 units.
View the RMI report to see how other markets performed through the first nine months of 2015.
Written by Jason Oliva