Monthly production of reverse mortgages insured by the Federal Housing Administration was mixed. Wholesale lenders lost ground, while retail originators closed more business than during any month since the summer of 2009.
The biggest originator of home-equity conversion mortgages in December was — again — Wells Fargo Bank, N.A. The financial services behemoth funded 1,972 HECMs during December based on Reverse Market Insight Data. The prior month’s activity was slightly lower at 1,903.
Business moved higher at No. 2 MetLife bank. Closings climbed to 1,345 from November’s 1,221.
Bank of America, N.A., was next with 1,314 HECMs funded, jumping from November’s 929.
Earlier this month, BofA disclosed that it had “made the strategic decision to exit the reverse business due to competing demands and priorities that require investments and resources be focused on other key areas of our business.”
At One Reverse Mortgage, 368 reverse mortgages were originated, and No. 5 Generation Mortgage Co. generated 354 total closings.
During the final month of last year, total retail HECM originations were 4,343, more than 4,004 reported for November and the most loans closed since July’s 2009’s 4,436 HECM fundings. In December 2009, retail production came in at 3,954.
But wholesale HECMÂ fundings were not higher.
Wholesale production fell to 2,207 in December from 2,547 a month earlier. The decline was even more pronounced when compared to December 2009’s 4,326 units.
Despite the overall decline in wholesale HECMÂ originations, both MetLife and BofA were able to boost business from November. MetLife’s wholesale originations climbed to 707 HECMs from November’s 642, while BofA saw wholesale volume rise to 450 in December from 379.
But No. 3 Urban Financial was unable to generate an increase, instead sinking to 248 wholesale fundings from 456 a month earlier.
Generation Mortgage closed 240 wholesale HECMs, fewer than November’s 292, and No. 5 Wells Fargo lifted wholesale production to 152 HECMs from 120.
