While we show you the top 10 HECM lenders every month, the people at RM Insight broke down the top 10 lenders in the New England area for 2007 to change things up a bit. For more information check out the report at the bottom.
Region Highlight – New England
- Slightly stronger growth in this region than industry overall (44.4% vs. 35.7%), but more important to note the disproportionate share of new lenders in this region. More than half (94 of 180) of all lenders active in this region in 2007 did not have endorsement activity in the first nine months last year and collectively they represent over 10% of the total endorsements YTD. Although certainly the endorsements per lender is not dramatic, it sets the stage for dramatic growth in the future.
- Relatively high market concentration (53.0% NE vs. 43.9% overall) in New England suggests the region is perhaps slightly behind the curve in competition and market expansion, but the larger proportion of new lenders highlighted above and faster decline in concentration (74.8% prior vs. 53.0% YTD) suggest this region is primed for continued growth.
- Lastly, it’s worth pointing out how different the region’s top 10 lender list is from the overall industry. While the usual suspects, Wells Fargo and Financial Freedom, are firmly entrenched at the top 2 slots, the remaining 8 names only have one other lender from the industry’s top 10 (BNY Mortgage) and even then at a different ranking (5 vs. 8). This confirms that there are very few truly national powerhouses in the industry as of yet, and in many cases regions have their own character. It also suggests that the way remains open for someone with a rollup acquisition strategy similar to Financial Freedom circa 5-10 years ago to create a dominant position through a series of regional lender acquisitions.
“Market statistics and report sample provided by Reverse Market Insight, the leading source of market intelligence in the reverse mortgage industry. For more information about RMI and to purchase the full MIC report with additional key performance indicators and market statistics, please visit our website at www.rminsight.net“