Mortgage

Reverse mortgage data details industry-wide volume plunge

Wholesale endorsements suffer greatest decline at 34%

Reverse mortgage volume plummeted a staggering 31.4% in December, closing out the month with just 1,749 loans and ending the year on a rather sour note.

A new report from Reverse Market Insight breaks down the numbers, revealing that wholesale endorsements suffered the greatest loss with a 34.4% dip in volume as the channel closed just 674 loans.

Retail was not far behind with a 29.4% drop. Retail loan officers closed 1,075 loans in December – just over one-third of the volume this channel saw in January 2018.

RMI noted that the “carnage was widespread,” as all but one of the top 10 HECM lenders witnessed a decline in December.

Cherry Creek Mortgage Company was hit the hardest with a 46.2% loss in volume, followed by One Reverse Mortgage with a 41.7% drop and Finance of America Reverse at a 36.6% drop.

Liberty Home Equity Solutions was the only top 10 lender to eke out a gain, ending the month up 8.3%.

Year-to-date growth for all top 10 lenders was down with the exception of Fairway Independent Mortgage, which posted a 20.5% gain.

Other bright spots among the steep declines: Resolute Bank closed 16 loans in December, ending the month up 60%, while Integrity 1st Mortgage closed nine loans to end the year up 80%.

While the numbers are staggeringly low for most industry players, RMI President John Lunde said he does foresee a rebound – eventually.

“It will be another tough year,” he predicted. “I think we've already started to climb out of the hole barring any further shocks to the system, but it's just a really slow climb.”

Most Popular Articles

Realtors expect these to be the 10 hottest housing markets for the next 3-5 years

Here are the 10 housing markets that the National Association of Realtors expects to the hottest in the nation in the next three to five years.

Dec 11, 2019 By

Latest Articles

Gateway First Bank makes two key hires

Gateway First Bank made back-to-back announcements this week regarding two key hires. The bank welcomed Joell Maddox as director of treasury services and Thomas Ramm joined as chief investment officer.

Dec 12, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please