Reverse mortgage volume continued to grow nationally through November with a 12% uptick during the month to 4,690 loans. But while endorsements are expected to continue on pace for the next several months, according to a report this week from Reverse Market Insight, changes to the product will likely begin to take major effect in early 2014.
“We expect to see endorsements continue to be relatively strong for the next few months, but turn significantly lower toward the end of Q1 next year,” RMI writes. “New applications are falling well short of replacing pipeline fundings since principal limits were reduced.”
But in spite of headwinds resulting from the new product landscape, the last nine months have showed growth in line with home price appreciation over the same period, RMI notes.
“On the bright side, despite all the program changes this year it’s been a growth period for the industry with volume up 15.9% through November, including 9 straight months of year over year increases since March,” the report notes. “That coincides fairly closely with housing price upticks over the same time frame, but it’s more a case of no significant lender exits upsetting distribution and marketing reach this year alongside stabilized housing prices.”
Six of the top 10 lenders saw volume increase during the month, with one lender’s volume remaining flat the and three seeing volume decline. Among the top 10 lenders, Security One/Reverse Mortgage Solutions holds the top spot for endorsements over the past 12 months, at 7,311 loans. S1L is followed closely over the same time period by American Advisors Group with 7,074 loans and Liberty with 7,062 loans. One Reverse and Urban Financial complete the top five lender list with 5,411 and 3,937 endorsements, respectively.
Written by Elizabeth Ecker