Gap Narrows Between Wholesale and Retail HECM Endorsements

Both retail and wholesale lending saw improvements in June with a total endorsement growth of 13%, and a relatively low performance gap between the two for the third consecutive month, says the latest Reverse Market Insight newsletter.

Retail endorsements saw a 13.8% increase from the previous month, and wholesale/broker endorsements rose 11.7%. After regulatory changes from the Federal Housing Administration, a significant performance gap opened up between retail and wholesale branches, but this divide has narrowed in the past few months as the FHA approval and loan officer compensation changes have fully absorbed into endorsement numbers, says RMI.


The ratio of retail-to-wholesale looks to have settled into a “new normal” of 60%-to-40%, respectively, says RMI, compared with 2009’s retail average of 47%. This average saw a substantial increase in 2010 to 54% and even rose to 66% in December, although it has remained at 61% so far this year, with a range of 59-63%.

MetLife Bank currently leads the wholesale rankings, followed by Urban Financial and Genworth Financial Home Equity Access.

View the report here.

Written by Alyssa Gerace

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