Retail Leads November Drop in Reverse Mortgage Endorsements

Home Equity Conversion Mortgage (HECM) endorsements fell by 13.5% in the month of November, for a total of 2,841 loans according to the latest HECM Originators report from Reverse Market Insight (RMI). The fall was led by the retail endorsement segment of business, which experienced a decrease of 18.5% that month, while wholesale levels recorded a smaller decrease of 4.5%.

The average performance of all top 10 lenders underperformed based on industry-wide metrics, with the top 10 recording a total loss of -13.8%. Still, a few top lenders managed to post gains in November regardless of the larger trend.

Finance of America Reverse (FAR) recorded an increase of 16.6% to 387 loans for the month of November, their highest endorsement figure since July 2019. Sun American Mortgage, currently ranked number 36 on the top 100 lenders based on data from the prior 12 months, increased its endorsement total to 15, noted as a “tripling” of its figure from October by RMI President John Lunde.

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Primary Residential Mortgage, Inc. (PRMI), currently number 29 on the top 100 lenders from the prior 12 months, ranked number 14 in the month of November by seeing its endorsement figure rise by 91.7% to 23 loans.

Although the overall percentage figure is nearly identical to RMI’s previous November HECM Lenders report, Lunde previously detailed for RMD that the HECM Originators report is useful in seeing the splits in and health of the retail versus wholesale channels, which helps to illustrate how lenders are doing from a more individualized and channel-specific perspective.

Read the HECM Originators report at RMI for specific breakdowns and more regional performance data.

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