Reverse Mortgage Lenders End First Quarter of 2011 on High Note

The reverse mortgage industry ended the first quarter of 2011 on a high note, growing for the first time on a year over year basis since July 2009 according to data from Reverse Market Insight. During March, lenders endorsed 7,306 HECM units, up 5.8% from the previous month and an increase of 25.5% from 2010.

Chart of the Day: HECM Rates After the Market Crash

New data from IBIS Software shows the dive rates took when the markets crashed in the fall of 2008. “When, and if, times return to normal, a LIBOR with a 2.50% margin will have a materially higher interest rate than the current fixed-rate HECM offerings,” said Jerry Wagner, CEO of IBIS. If the 10 year […]

Reverse Mortgage Wholesale Volume Up 9.3%, Broker Market Share Increases

Reverse mortgage wholesale volume rose 9.3% in January according to a report released this week from data provider Reverse Market Insight (RMI). Wholesale endorsements totaled 2,413 units in January, a near 10% increase over the previous month, but still down 45.8% from January 2010.  Retail endorsements lost 6.8% month-over-month, totaling 4,049, but gained 27.7% from last […]

FHA Wants to Reduce Market Share: The Impact on Reverse Mortgages

During testimony before the House subcommittee last week, David Stevens, FHA Commissioner, said bringing private capital back into the mortgage markets is a critical component to further recovery of the broader economy. “This administration believes that the current level of government support for housing finance is unsustainable and unacceptable for the permanent state of this […]

Chart of the Day: Obama Budget Forecasts HECM Volume Down 17% in 2012

Released earlier this week, Presdient Obama’s budget projects a $1.65 trillion deficit this year and includes $1.1 trillion in deficit-reduction measures over the next 10 years, with two-thirds of those savings coming from spending cuts and one-third from tax increases. While the budget shows the HECM program no longer requires a subsidy from Congress, it also projects […]

Broker Volume Continues to Fall in December, Consolidation Ahead?

Wholesale reverse mortgage endorsements fell 13.3% during December, while retail originations gained 8.5% according to data from Reverse Market Insight (RMI). Broker business fell to 2,207 units during the month while retail endorsements came in at 4,343 units. Overall, combined totals show a flat line from November to December 2010, falling by a single endorsement […]

Reverse Mortgage Volume Remains Flat, Growth Ahead

For all those hoping the industry would start of 2011 with a big month in volume, sorry, it didn’t happen. Reverse mortgage lenders endorsed 6,464 HECM units in January, down 1.4% from the month before and 15.3% lower from January 2010 according to Reverse Market Insight.  The number of active lenders fell 34.5% from last […]

Applications Rise Slightly in December, First Look at HECM Saver Data

The number of reverse mortgage applications rose 0.6% in December, coming in at 8,270 units according to the Federal Housing Administration. Application volume remains consistent for fiscal year 2011, but is up 19.4% compared to December 2009. During the month, there was 6,554 reverse mortgages endorsed with a max claim of $1.7 billion, down 0.1% from […]