The July HECM report from analytics firm Reverse Market Insight reveals that loan volume levels are hovering at historic lows.
“HECM endorsement volume gained fractionally in July, up 0.4% to 3,359 loans,” the report states. “This is the biggest sign yet that HECM volume may have bottomed following the substantial program changes that took effect Oct. 2, 2017.”
Still, volume remains at the 13-year low it hit in June.
The slump is a result of changes issued last fall by the U.S. Department of Housing and Urban Development that effectively limited the amount of proceeds available and the number of people who could benefit from the loan.
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Here are the highlights from the latest RMI report:
- Volume in the month after is lowest in the most recent change, which makes sense given it was both the largest change in the program’s history and came on the heels of other changes that cumulatively have reduced HECM volume over the years significantly.
- Volume in the subsequent months is also the lowest of all four changes, although Financial Assessment and 2014 PLF had similarly slow recoveries from the starting point.
- Volume for the most recent change has stabilized in Feb-May between 194 and 209 cases issued per business day.