Home Equity Conversion Mortgage (HECM) endorsements fell by 6% in the month of August 2020, for a total of 4,007 loans according to the latest HECM Originators report from Reverse Market Insight (RMI). The fall comes in the midst of generally heightened reverse mortgage industry activity that has been taking place over the past few months as the economic impact of the COVID-19 coronavirus pandemic continues.
The slight volume reduction was primarily led by the wholesale endorsement segment of business, though less than a single percentage point separated the divide between wholesale and retail business segments in August. Wholesale volume fell by 6.5%, while retail volume fell by 5.6%.
Among the top 10 lenders who appeared to perform best in August, Longbridge Financial had the most pronounced performance increase recording a 31% jump to 499 loans. Open Mortgage followed with a rise of 28.8% to 179 loans. The majority of other top 10 lenders active in the space recorded modest decreases to their monthly volume totals.
While still technically the 7th largest reverse mortgage lender by volume over the past 12 months, the now-shuttered One Reverse Mortgage recorded zero endorsements in both July and August, and recorded only one endorsement in June.
RMI President John 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 regional performance data.