Reverse mortgage endorsements declined between January and February 2017, but the overall total remains up from the same span last year, according to new data from Reverse Market Insight, Inc.
Through the first two months of 2017, Home Equity Conversion Mortgage originators endorsed 8,997 loans, a gain of 6.3% from the same period in 2016 — or 531 more HECMs. But it’s also important to note that the first two months of ’16 saw a substantial decline from 2015; the 8,446 loans endorsed through February 2016 represented a 12.3% decline from the previous year, a harbinger of an overall weak year for endorsement totals to come.
Broken out as discrete months, the picture gets a bit bleaker.
“In February, HECM endorsements experienced a similar drop from January as in 2015, but starting out significantly lower than in January 2015,” RMI pointed out in its analysis. “And a significant gain in February 2016 put the month below either of the recent comparisons in our HECM Trends report.”
The Dana Point, Calif.-based research firm highlighted some interesting trends around the country in its monthly HECM Trends report, including the relatively uncommon appearance of an Ohio community in its list of top 10 ZIPs for endorsements — Westerville’s 43082, with 12 — and 50% year-to-date growth in Portland, Ore.
Colorado and Washington state continued their positions as national hotspots for HECM growth, joined by newcomers Ohio and Vermont. In terms of pure numbers, California — as usual — topped RMI’s list of states by endorsement volume, followed by Florida, Texas, Colorado, and New York.
The list of top originators also consisted largely of the usual suspects, with industry leader American Advisors Group (1,696) more than tripling the number of endorsements logged by its next closest rival, Quicken’s One Reverse Mortgage (509). Firmly in third place, Reverse Mortgage Funding jumped two spots from this time last year, and now leads Liberty Home Equity Solutions and Synergy One Lending, which round out the top five.
One interesting gainer to watch: Advisors Mortgage Group, which finds itself eight spots ahead of its ranking at this time last year with 183 endorsements.
Written by Alex Spanko