Reverse mortgage endorsement volume grew in October, rising 7.3% above the previous month.
The HECM Lenders report from Reverse Market Insight shows that FHA-approved lenders endorsed 3,091 loans last month with eight of the top 10 lenders experiencing growth. Endorsing 247 Home Equity Conversion Mortgages in October, One Reverse had the biggest gains of 24.7% over September. Following were Reverse Mortgage Funding with 22.5% growth and 218 loans, and Synergy One — which just last week announced its acquisition of BBMC Mortgage — with 16% growth and 174 loans.
Regional gains were also a highlight of the report, with eight of the country’s 10 regions showing improved numbers. New England got the biggest boost at 34%, followed by the Southwest’s 29% increase — its biggest gain since May. The only regions not to experience a rise were the Southeast/Caribbean and the Northwest/Alaska.
RMI president John Lunde told RMD that “no news is good news.”
“If we had continued lower from September or made a new low entirely that would have been significant and changed my view of where we’re headed on HECM volumes,” he said.
While new program changes or competition could change future volume, but he foresees continued slow growth.
“Since we’re still staying above June’s low mark I’d expect we’ll see very slow and lumpy growth in HECM volumes for the foreseeable future,” he said. “If FHA makes further changes that significantly impact the program that could change, or if there’s proprietary product development that directly competes and steals share from HECM that would be another way I could see that changing.”
Written by Maggie Callahan