Reverse mortgage volume recovers slightly

October sees endorsements climb 7.4%

The reverse mortgage market continues its uneven recovery after taking a sizable hit from program changes issued last year.

The latest HECM Originators report from analytics provider Reverse Market Insight shows that endorsements were up 7.4% to 3,087 loans in October.

The data follows a bumpy trajectory that has been the pattern as of late, with volume rising 9.8% in August, then falling 9.9% in September, and then rising again in October.

RMI President John Lunde told HousingWire that if October’s data continued the decline seen in September, it might be a sign of trouble.

But instead the month closed out with positive gains, indicating that September’s dip was simply a reaction to word of possible program changes and not a sign of true distress.

Both retail and wholesale channels showed gains in October, with retail up 7.9% and wholesale up 6.7%

Eight of the top 10 lenders also posted gains, with One Reverse Mortgage leading the pack with a 24.7% uptick. Synergy One Lending followed with a 17% gain, and Fairway Independent Mortgage came in third with a 13.2% rise.

Lunde said the uneven recovery is likely to continue for some time as the market adapts.

“Our next year or two looks like a slow creep upward,” he said, “with plenty of bumps along the way.”

Most Popular Articles

With record-low mortgage rates, originators and real estate agents aren’t taking a holiday anytime soon

Low rates are making this summer one for the record books. Accordingly, loan officers, underwriters, real estate agents and those working in title and settlement offices are continuing to work the long hours that have become the norm since March. Not that they’re complaining.

Jul 02, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please