The post-October 2 hangover is here.
Originators of Home Equity Conversion Mortgages — including both Federal Housing Administration-approved lenders and their non-approved counterparts — suffered a decline of 17.6% in February, according to the most recent set of numbers from Reverse Market Insight.
That’s a major shift from January, which saw the effects of the boom in originations created by people rushing to lock in the higher principal limit factors prior to the October 2 deadline. January saw a 32.9% increase from December, with a total of 6,308 loans.
But the bottom fell out in February with a total of just 5,195 loans, with 2,649 HECMs through the retail channel and 2,546 wholesale loans — a decline of 16.9% and 18.4%, respectively.
Only High Tech Lending saw increases among the top 10 lenders, turning in an impressive 82.9% jump to finish with 192 loans.
When the Dana Point, Calif.-based RMI removed wholesale broker volume from the analysis, American Advisors Group actually saw a 2% gain despite an overall dip of 5.3%, while ReverseMortgages.com leapt by 70.4% to 92 HECMs.
Still, the 5,195 loans originated in February represents something of a high water mark over the trailing 12-month period; despite representing a 17.6% drop from January’s high, it was actually the third-highest volume of the last year, bested only by January and March 2017, which saw 5,355 loans.
Check out the full stats at Reverse Market Insight.
Written by Alex SpankoPrint Article