Fresh on the heels of data showing an increase in reverse mortgage originations for August, a new report reveals that the secondary market had a similar boost as summer comes to an end.
Production of Home Equity Conversion Mortgage-backed securities (HMBS) rose from $321 million in July to $340 million in August, according to the latest data set from analytics firm Baseline Reverse.
“Dead cat bounce or the start of a widespread recovery?” Baseline Reverse founder Dan Ribler wrote in his analysis. “Time will tell, but my money’s on the latter.”
Industry leader American Advisors Group paced the pack with $94 million in new production bonds, up from $83.5 million in July; that was good for 27.7% market share. Reverse Mortgage Funding, Finance of America Reverse, and Ocwen rounded out the top four; Live Well Financial and Longbridge Financial tied in fifth place.
“It’s worth pointing out that four of the six lenders in our top five experienced production growth in August,” Ribler noted.
Baseline’s stats were released around the same time as a Reverse Market Insight analysis showing 9.9% reverse mortgage endorsement growth between July and August, marking the second consecutive month of gains after falling to their lowest point since 2005 in June.
Written by Alex Spanko