Few Reverse Mortgage Lenders Bounced Back From Rough September

After a roughly 26% nosedive in September, wholesale reverse mortgage, while it continued its downward trajectory, declined at a much smaller rate in October, according to recent industry data. Even as the industry saw a 7% decline in total endorsements for October, some lenders were able to bounce back from a tough September.

Total Home Equity Conversion Mortgage (HECM) endorsements were down 7.3% in October (4,328) compared to the previous month, according to the latest data from Reverse Market Insight.

The monthly decline was supported by decreases in both the retail and wholesale segments. For the second consecutive month, wholesale declined at a faster pace than retail, dropping 8.6% to 1,901 endorsements on wholesale compared to a 6.3% decrease to 2,427 units on the retail side.


Despite the industrywide decline in endorsements for October, several lenders returned with considerable gains from a rough September, a month that saw overall volume plummet 18.8%—the highest single month decline in the past year, according to RMI data.

Seeing the largest monthly increase, Cherry Creek Mortgage Company rose 34.8% in October to 62 loans, as it moves into the tenth ranked spot among the top-10 lenders.

Reverse Mortgage Funding also reported an increase for the month, with endorsement volume rising 10.2% to 271 loans. The company’s volume over the last 12 months through October 2015 is 2,339 units higher than the comparable 12-month period last year (Nov. 2013 – Oct. 2014), driven by 1,337 more wholesale units and 1,002 retail.

Live Well Financial nearly saw a double-digit increase in October, with monthly endorsement volume jumping 9.8% to 190 loans. Over the 12 months trailing October, Live Well’s volume is 1,764 units higher than it was for the comparable period last year.

Reverse Mortgage Solutions/Security 1 Lending was the only other lender to post a monthly increase in October, as the company saw endorsement volume rise 4.1% to 355 loans.

To see how other lenders performed, view the RMI report.

Written by Jason Oliva

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  • As to our industry, it will be interesting to see if “bouncing back” is more or less difficult after April 27, 2015. We are very early in the process of drawing conclusions about what the world of financial assessment actually is. The only thing that is apparent is that recovery has not yet been established although it may have started and is yet to be seen in HECM production numbers already achieved but not yet released by HUD especially when it comes to case number assignments.

    Although total endorsements may be less than 50,000 this fiscal year, that total is less than several predicted and more than industry pessimists claimed. We are not there yet but 50,000 endorsements seems like a reasonably obtainable goal.

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