Reverse Volume Drops
Reverse mortgage originations fell last month -- though the biggest lender managed a gain.

Reverse mortgage lenders closed 8,772 home-equity conversion mortgages during October, according to the newsletter Reverse Market Insight.

Volume declined from 9,473 units in September and sank from 10,121 HECMs closed during October 2008.
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MetLife Fundings Fall
Quarterly mortgage production fell by a third at MetLife Home Loans. But mortgage headcount grew, reverse mortgage originations were higher and the servicing portfolio increased.

Reverse Lender Facing Loss of FHA Approval
A reverse mortgage lender in Hawaii faces the loss of its Federal Housing Administration approval over allegations it failed to meet FHA quality control requirements, didn't provide reverse mortgage prospects with adequate disclosures and confused borrowers by promoting annuities alongside its reverse programs. It's at least the third time the company has faced regulatory actions.

FHA Business Lower, Reverse Higher
Despite a monthly increase in the volume of home-equity conversion mortgage endorsements, overall endorsements on loans insured by the Federal Housing Administration declined. In addition, average credit scores were lower. But new applications saw a healthy increase.

California Enacts Several New Mortgage Laws
Loan originators, reverse mortgage lenders and appraisal management companies are all impacted by sweeping new mortgage laws in California. Lenders to non-English speaking borrowers and lenders on higher priced loans are also impacted.

Reverse Volume Down, But 1 Lender Forecasts Growth
Monthly reverse mortgage volume fell, and declining applications indicate additional declines are ahead. A reverse lender that recently received its "Full Eagle" projects it will quadruple its loan origination base, while a reverse mortgage wholesaler expanded.

Wholesale Reverse Business Off
Wholesale reverse mortgage production declined in August, though surging originations at one firm helped it become the second-biggest wholesaler for the month. MortgageDaily.com corrected a story Tuesday that mistakenly identified retail reverse originations by lender as overall production at the companies.

Reverse Originations Rise
As the volume of home-equity conversion mortgages rose last month, the second biggest reverse mortgage lender gained ground on the top originator.

Over 30 New M&A Deals
In addition to dozens of pending bank acquisitions, deals were recently struck to acquire a reverse mortgage lender, an FHA lender and a privately owned Florida lender. Other transactions include a joint venture with a Wells Fargo & Co. subsidiary and two acquisitions involving mortgage service providers. In all, more than 30 transactions have been identified during the past two weeks.

The Wholesale Scoop
While fewer wholesale lenders seem to be chasing fewer mortgage brokers lately, several recent offerings go beyond traditional conforming and government programs. Among those still pursuing third-party originations are commercial and reverse mortgage lenders.