Reverse Mortgage Originators Clocked Strong Finish to 2016

Despite persistent concerns about a downturn in the reverse mortgage industry, home equity conversion endorsements jumped nearly 20 percent in December 2016 as compared to the previous month, according to new data released today by Reverse Market Insight, Inc.

The Dana Point, Calif.-based research firm reported a 22.5 percent gain in retail endorsements and a 16.9 percent jump in wholesale endorsements from November 2016, for a blended overall total of 19.9 percent.

“That growth might have been fueled by some year-end cleanup, but growth is welcome from just about anywhere these days,” the firm noted.

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Reverse Mortgage Funding continued its impressive gains, more than doubling its output in November 2016 — generating 748 loans — to claim a 9.9 percent market share for the year, behind American Advisors Group and Finance of America Reverse. Liberty Home Equity Solutions and One Reverse Mortgage rounded out the top five HECM generators by volume for 2016, according to RMI.

Written by Alex Spanko

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  • Yet look at the results. Calendar year 2016 had the lowest endorsement total for any HUD fiscal or calendar year end (September or December) in over a decade. December 2016 which saw an almost 20% increase in monthly endorsements over November 2016 but it was only the sixth best total for any December in over a decade.

    Already we know that total endorsements for the first six months of fiscal 2017 is going to be the worst six month total for the first half of any fiscal year again in over a decade. Also it is expected that total endorsements for the first quarter of calendar 2017 will be the worst such in again in over a decade.

    Let us not fool ourselves. A single month’s endorsements can go up or down due simply to scheduling enough administrative staff to get the job done. For example, major lenders can have a few hundred endorsements one month and over a thousand the next even though monthly closings were only a few hundred closings different.

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