While up 1.1% from September, reverse mortgage volume fell to a near record-low level in October, indicating national volume remains down following lender exits including Wells Fargo and MetLife from the business.
The low volume indicates an uncertain future for monthly figures to come, says a report from Reverse Market Insight released Friday on the volume in October. The report comes just days following the devastation caused by Hurricane Sandy which left parts of the Eastern Seaboard destroyed and without electricity—factors leading to substantial delays for loan processing and closings across many states.
After rising above a volume benchmark set by Wells Fargo’s exit last year, HECM case number assignments have fallen well below the lowest figures for the year since MetLife’s subsequent exiting in April 2012, RMI notes. The 3,745 endorsements represents a mere 1.1% increase from the low numbers recorded in September. Not enough to trounce July’s reading, October’s increase marks the second lowest volume month since July 2005.
Despite the small increase in HECM volumes, some lenders experienced significant growth in October.
Security One Lending grew 141% to lead all lenders at 636 endorsements, a jump large enough that there is reason to believe a good portion of the increase will be sustained in the months ahead, reports RMI.
Generation Mortgage Company recorded a 33.5% growth to take the number three spot behind Genworth Financial Home Equity Access, and American Advisors Group joined in with a 14.6% increase in October HECM endorsements.
Overall, the top-10 lenders RMI lists have experienced an average growth of 1.6% in HECM endorsements for the month of October, 0.5% higher than that of the industry average.
In past years there has been a pullback toward the year’s end, however, September may prove too early to actually see that effect taking hold, noted RMI.
Written by Jason Oliva
