Applications for Federal Housing Administration-insured reverse mortgages rose 4.9% in July to 7,374 applications, up from 7,032 applications in June. While the change represents an uptick from the previous month, application remain down 3.5% year-over-year, according to the latest FHA housing outlook report.
Of Home Equity Conversion Mortgages endorsed by FHA in July, all products saw a decline. HECM Saver endorsements declined more than 40% to 247 loans, while the HECM for Purchase count fell from 173 to 137 loans.
To date, HECM applications for fiscal year 2012 lag the 2011 fiscal year by close to 15% following the exit of MetLife from the reverse mortgage business in June, as well as sustained home price declines across the United States.
Written by Elizabeth Ecker