MortgageReverse

HECM Applications Fall 17%, Saver Sees Its First Monthly Decline

Total HECM applications fell 16.6% in April, to 7,371, down from 8,838 applications in the previous month. Year over year, applications saw a 9.8% decline (see chart).

To date, FHA has received 56,490 HECM applications in fiscal year 2011, ending Sept. 30, and projects the total number to reach 80,000 for fiscal year 2011.

Chart: Reverse Mortgage Application Trends

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Reverse Mortgage Application Trends

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HECM endorsements totaled 6,123, including 392 Savers, which saw a 4% slight decrease during the month from 409 in March. The decline represents the first monthly decrease for the new reverse product, which was rolled out in October 2010. At 392 endorsements, HECM Savers represented 6.4% of total HECMs.

Overall, reverse mortgage endorsements were down 16.2% from last month’s total of 7,306. Year over year, HECM endorsements posted an 11.1% gain from 5,511 in April 2010.

In terms of reverse mortgage refinance activity, refis saw a slight decrease from 5.1% of total endorsements in Mach to 3.2% in April.

View the full FHA Outlook for April.

Written by Elizabeth Ecker

 

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