HECM endorsements fell 16.2% in April to 6,124 loans, according to a report from Reverse Market Insight this week.
The decline follows a year-over-year increase in March that represented the first such increase in almost two years, said RMI.
“The reverse industry has certainly had its share of detours and bumps, so it might come as no surprise that April’s endorsements were down,” RMI’s report said.
With 360 endorsements in March from non-FHA approved originators, the number of active lenders is understated for now, RMI says.
“It will be interesting to see how that regulatory evolution eventually affects things, as the big spike last month suggests it has the potential to reverse the declining number of active lenders once we can fully measure the impact here,” RMI says in its report. “It would be even more inspiring to see volume from non-FHA approved lenders lead to a boost in overall volumes.”
From a market share standpoint, in spite of declines across the nation, eight of the top 10 lenders showed increases in April, RMI says, which underlines the declining competition trend. The top 10 lenders comprised 67% of total volume in April. The top five lenders in April were Wells Fargo, Bank of America, MetLife, One Reverse and Generation Mortgage.
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Written by Elizabeth Ecker
