Reverse mortgage volume continued on a downward trajectory in June, falling 15% relative to May endorsements, according to Reverse Market Insight. With a total tally of 2,838 Home Equity Conversion Mortgages endorsed in June, volume is at its lowest monthly level since May 2005, RMI noted in its monthly commentary.
Many have speculated about the “new normal” for reverse mortgages following major program changes implemented in October 2017, and originators this week weighed in on the volume losses they are experiencing—pointing to volume declines ranging from 10% to 50% since October.
Regionally, among the top 10 metros tracked by RMI, eight saw volume declines during June, with New England and the Great Plains region seeing single-digit volume upticks.
All lenders on the top 10 volume list experienced declines during June, according to the RMI report, with top lender AAG’s volume falling 13% month over month to 874 endorsements and second-spot Finance of America Reverse experiencing a 9% volume loss during June with 275 endorsements.
View the RMI report.
Written by Elizabeth Ecker