Chart of the Day: FHA’s Reverse Mortgage Volume Projections

The Department of Housing and Urban Developement published the actuarial report for the HECM program and revealed the Federal Housing Administration’s volume predictions for the future. According to the report, with the introduction of the HECM Saver option in FY 2011, FHA projects the number of reverse mortgages to increase by 6 percent to 85,217 in […]

Applications Rise But Reverse Mortgage Volume Falls 11.5% in October

Reverse mortgage lenders endorsed 5,279 HECM units in October, down 11.5% from September.  According to Reverse Market Insight, the decline was widespread, with the Southwest and Great Plains seeing the only increases during the month. Considering that the number of applications has been rising consistently, it’s a disappointing month. Looking at the chart of applications […]

FHA Audit Shows Credit Quality Improvement, HECM Liability Increase

The latest independent audit of the Federal Housing Administration shows the agency experienced better than anticipated credit quality of borrowers and an improved house price appreciation forecast in the short term. The audit, prepared by Clifton Gunderson, estimates the liability for the Mutual Mortgage Insurance (MMI) decreased from $28,456 million at the end of fiscal […]

Chart of the Day: Prepayment Speeds of HECM vs. Private Reverse Mortgages

Prepayment speeds for non-conforming reverse mortgages have always been higher than HECM products according to New View Advisors.  The company’s prepayment index shows that HECM prepayment speeds have stayed relatively even over the years and has fallen with the collapse in home values. Jumbo reverse mortgages are a whole different story.  As you can see […]

Data Shows Big HECM Saver Opportunity, But Adoption Could Be Slow

A look into data from the 2009 American Housing Survey shows there is plenty of opportunity for the Federal Housing Administration’s new HECM Saver, but lenders say it could take some time before the new product catches on. As an industry, reverse mortgage lenders have become fairly successful at reaching borrowers looking to pay off […]

Chart of the Day: Philadelphia Bucks the Downward Reverse Mortgage Trend

Despite reverse mortgage volume being down 31% during fiscal year 2010, Philadelphia has managed to see an increase in volume according to data from Reverse Market Insight. According to RMI, Philadelphia is the only city in the top 10 growing year to date (4.3%).  So why is the city of brotherly love seeing more volume than others?  Refinance […]

Direct Lenders Continue to Take Market Share from Reverse Mortgage Brokers

Broker business continues to lag behind direct retail lenders business according to the latest data from Reverse Market Insight.  During August, overall reverse mortgage volume was up 13%, with retail up 18% (3,969 units) and broker business up just 6% (2,672 units). Retail direct lenders volume surpassed reverse mortgage broker business in May and hasn’t […]

HECM Volume Falls, Number of New Reverse Mortgage Lenders Hits Record Low

After three consecutive month over month increases in volume, reverse mortgage lenders endorsed 5,966 HECM units during September, down 10% from August.  Endorsements from September bring overall year to date volume to 54,356 HECMs, down 38% from 2009. According to Reverse Market Insight, the number of active lenders in the industry is down 30%, falling to 2,067 in […]

Reverse Mortgage Volume Down 31% in FY 2010, Analyst Optimistic for 2011

The last month of the Department of Housing and Urban Development’s FY 2010 may have ended on a low note − only 5,966 HECM endorsements, down 10.2% from August −  but a new report from Reverse Market Insight reveals an optimistic outlook for 2011. For the federal government fiscal year, 79,096 reverse mortgages were endorsed […]

Investors Trying to Value New FHA Reverse Mortgage Product, GNMA on Board

As the release date for the new HECM Saver program approaches, investors are flying blind in figuring out how to value the new product before it’s released. “The dealers are trying to get an idea about how it should be valued,” said Jeff Traister, head HMBS trader at Cantor Fitzgerald during a call with Reverse […]