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 compared to endorsements – with a 4 month lag – it shows fallout has increased and could be the reason for the decline during October. According to RMI, the cancellation rates from endorsements in September to October have increased from 29% to 42%.
As far as top 10 lenders go, four of the top 10 lenders increased month over month. The top 10 was only slightly better than the rest of the industry, down 11.1% vs. -11.5% overall.
To check out the full list and report, see here.
