Reverse mortgage endorsement figures dropped 12.1% between June and July, continuing a pattern of monthly declines after an early-year peak.
Federal Housing Administration-approved Home Equity Conversion Mortgage lenders generated 4,254 endorsements last month, according to the most recent data from Reverse Market Insight, Inc — a decline of 583 from June’s total and a drop-off of more than 1,000 loans from a blockbuster March.
“That drop completed the round trip back to February volume levels after a large increase in March, although staying slightly above the monthly average from last year,” the Dana Point, Calif.-based research firm noted in its analysis.
Nine of the 10 regions that RMI tracks saw declines last month, with the only positive coming from the Great Plains and its 10-loan gain from June.
All top 10 lenders saw monthly declines, with industry leader American Advisors Group dropping from 1,126 to 986 and second-place Finance of America Reverse slipping from 532 to 504; rounding out the top five for the month were Reverse Mortgage Funding, Synergy One Lending, and Liberty Home Equity Solutions.
Notably, Reverse Mortgage Solutions and Security One Lending recorded their first month of zero endorsements since their owner, Walter Investment Management Corporation (NYSE: WAC), shuttered their origination businesses in January. After recording just eight in February, the remaining RMS/Security One pipeline managed to generate 228 and 222 endorsements in April and May, before falling to 26 in June and recording the goose egg last month.
Check out the full results at RMI.
Written by Alex Spanko