Reverse Mortgage Retail Outpaces Wholesale to Start 2015

Home Equity Conversion Mortgage (HECM) originators began 2015 on an even keel, sustaining endorsement volumes in January after ending the prior year with a spike, according to the latest Reverse Market Insight (RMI) report. Retail outpaced wholesale to end the year, contributing to an overall 12.1% increase in HECM endorsements between November and December, RMI notes.

And though the upcoming financial assessment is likely to lead to a volume shift, that shift will likely not be realized until several months following the new rule’s implementation, says RMI President John Lunde. 

“I don’t expect FA to impact endorsement numbers until the second half of the year, probably even into August or September,” Lunde wrote in an email to RMD.

Overall, HECM endorsement volume was relatively flat (-0.1%) between December and January. Retail gained slightly from the previous month (+0.2%), while wholesale contracted (-0.5%). 

The period from December to January saw the smallest month-to-month change in endorsement volume in the trailing 12-month period, the latest RMI report indicated. 

Some lenders bucked the overall trend with dramatic volume increases in January, however. 

RMS/Security One Lending’s total retail and wholesale endorsement volume increased 26%, making January its highest volume month since February 2014.

Urban Financial of America also experienced strong volume growth of 15%, from 561 endorsements to 646. And the 1st Reverse team at Cherry Creek Mortgage Co. grew total volume by 10% month-to-month.

American Advisors Group continued to lead the pack for total volume, posting 1,288 January endorsements, representing 2.5% growth from the prior month.

View the RMI report.

Written by Tim Mullaney

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