Thanks to the exit of the most prominent reverse lender, government-insured reverse mortgage production took a dive last month. Quicken Loans Inc.’s reverse mortgage subsidiary emerged as last month’s biggest originator.
The Federal Housing Administration endorsed 3,868 home-equity conversion mortgages during July.
Volume sank from the 5,187 FHA-insured reverse mortgages that were originated in June. Last month’s HECMÂ endorsements were similarly down from 5,511 during July 2011.
During the first seven months of 2012, HECM endorsements totaled 33,071, according to data reported by Reverse Market Insight. Since beginning its fiscal year on Oct. 1, 2011, FHAÂ has endorsed 47,014 reverse mortgages.
One Reverse Mortgage LLC was responsible for 401 of last months HECM originations, more than any other company. The Quicken-subsidiary almost matched the 403 endorsements it generated in June.
Urban Financial Group followed, with production falling to 298 HECMs from 357.
Close behind was Genworth Home Equity’s 296 closings, then 252 at American Advisors Group.
MetLife Bank, N.A., gave up its No. 1 ranking to come in No. 5 this month with 250 HECM endorsements. Parent MetLife Inc. previously made the decision to close down the reverse mortgage business, and the unit is winding down.
