After a roughly 26% nosedive in September, wholesale reverse mortgage, while it continued its downward trajectory, declined at a much smaller rate in October, according to recent industry data. Even as the industry saw a 7% decline in total endorsements for October, some lenders were able to bounce back from a tough September.
Total Home Equity Conversion Mortgage (HECM) endorsements were down 7.3% in October (4,328) compared to the previous month, according to the latest data from Reverse Market Insight.
The monthly decline was supported by decreases in both the retail and wholesale segments. For the second consecutive month, wholesale declined at a faster pace than retail, dropping 8.6% to 1,901 endorsements on wholesale compared to a 6.3% decrease to 2,427 units on the retail side.
Despite the industrywide decline in endorsements for October, several lenders returned with considerable gains from a rough September, a month that saw overall volume plummet 18.8%—the highest single month decline in the past year, according to RMI data.
Seeing the largest monthly increase, Cherry Creek Mortgage Company rose 34.8% in October to 62 loans, as it moves into the tenth ranked spot among the top-10 lenders.
Reverse Mortgage Funding also reported an increase for the month, with endorsement volume rising 10.2% to 271 loans. The company’s volume over the last 12 months through October 2015 is 2,339 units higher than the comparable 12-month period last year (Nov. 2013 – Oct. 2014), driven by 1,337 more wholesale units and 1,002 retail.
Live Well Financial nearly saw a double-digit increase in October, with monthly endorsement volume jumping 9.8% to 190 loans. Over the 12 months trailing October, Live Well’s volume is 1,764 units higher than it was for the comparable period last year.
Reverse Mortgage Solutions/Security 1 Lending was the only other lender to post a monthly increase in October, as the company saw endorsement volume rise 4.1% to 355 loans.
To see how other lenders performed, view the RMI report.
Written by Jason Oliva
