Signaling the start of what is likely to be a challenging second half of the year for HECM endorsement volume, total endorsements dropped by 5.9% in July.

 

According to the latest Retail Leaders Report from Reverse Market Insight, endorsements in July totaled 5,511.  After crossing over to year-over-year positive growth in March, the latest month fell back into negative territory at 6.6% below July of 2010.

With the start of this decline, expected to continue as the wind down of Wells Fargo is felt in the tail end of the year, it appears that the industry will see its third consecutive year of total HECM endorsement volume decreases.  In July, Wells Fargo actually saw a boost to 1,719 likely related to their final push of origination pipeline before the clearing out is completed.

The second half of the year will also represent an interesting reshaping of the top 10 as lenders regroup and try to seize on voids left by the larger banks.  MetLife, whose planned sale of their banking division and new licensing approach will likely impact their reach.  Volume for MetLife fell in July by 30% to 716 units in July. 

Additionally, application declines compared to the previous year support a continued downward trend as the industry struggles to make up for the falling volume from large footprints.

About the Author

Most Popular Articles

Housing market flashing recession signal

The housing market is signaling there will be an economic recession by the 2020 election, according to Benn Steil, director of international economics at the Council on Foreign Relations.

Oct 11, 2019 By

Latest Articles

Foreclosure activity drops to lowest level since 2005

Foreclosure activity sank in the third quarter of 2019, dropping to the lowest level in nearly 15 years, according to the latest report from ATTOM Data Solutions. Foreclosure activity in the third quarter fell 19% from a year ago to the lowest level since the second quarter of 2005, a 13-year low.

Oct 16, 2019 By