On the heels of positive wholesale endorsement growth in the sector in February, the wholesale channel switched gears, falling 13.8% in March, according to the latest Reverse Market Insight report.
While total home equity conversion mortgage (HECM) endorsement growth was down overall at -1.7%, retail outpaced brokers dramatically, growing 8.4% in March compared to the previous month.
“It makes sense to look at the two months together [February and March] given the strange variation between the two in what were both declining months for the industry volume overall,” says RMI President John Lunde. In February, total HECM endorsement volume fell 4.5%.
“The industry went down 300 loans from January to March, and it was mostly wholesale that saw the decline even though that channel had fewer loans to start with,” he says. “That’s a shift worth watching over the next few months to see if brokers/wholesale in general continues to shrink as a share of the industry. We’re already toward the lower end of the recent range for wholesale share of industry.”
Several lenders also beat the overall downward HECM endorsement trend, the latest data shows.
Liberty Home Equity Solutions increased 38% to 620 loans and their highest levels in over a year; Proficio Mortgage Ventures grew 15.5% to 119 loans after a slow month in February that was below their 12 month average; and American Advisors Group grew just under 1% to continue their reign at the top of the chart.
In addition, in regard to single month rankings in March, Moneyhouse jumped 358% to join the top 10 for the first time, data show.
Access the latest RMI report here.
Written by Cassandra Dowell