While recovery remains sluggish, Home Equity Conversion Mortgage endorsements continued to climb in August, rising 9.8% from July for a total of 3,191 loans, according to the latest data from Reverse Market Insight.
The HECM Originators report shows the gains were spread across both retail and wholesale channels, with retail up 8.2% and wholesale up 12.1%. This is the first time that both FHA and non-FHA originators experienced growth since January when the October 2017 principal limit reductions were beginning to show their effects.
“Both channels were up for the first time since the most recent round of product changes kicked in, which suggests more sustainable volume levels longer term than a more narrow recovery in just one channel or the other,” RMI president John Lunde told RMD in an email. “Obviously it’s not as good as stronger growth but I think it sets the stage for future growth and recovery.”
He said the numbers do not change any of his previous statements about the slow speed of this recovery.
Seven of the top 10 lenders experienced this growth, with One Reverse experiencing the biggest jump at 22.2% to 275 up from July’s 225. LiveWell Financial was right behind, logging a 20% increase with 186 loans. American Advisors Group continued to be in the number one spot, holding 28% of the market share and 878 loans, an increase from 825 in July.
Different from RMI’s HECM Lenders report, Lunde said that the HECM Originators report is useful in seeing the splits and health of the retail versus wholesale channels and to see where lenders are doing well from a channel perspective.
Written by Maggie Callahan