Government-insured reverse mortgage production turned sharply lower last month, with volume plummeting to the lowest level in more than three years.
The Federal Housing Administration endorsed 3,345 home-equity conversion mortgages during April — the slowest month since 3,256 HECMs were endorsed in August 2014.
The dismal results likely reflect higher up-front FHA mortgage insurance premiums on HECMs, which were significantly raised in October.
Business tumbled from 4,300 endorsements one month previous. In the same month last year, loan originators generated 5,036 HECM endorsements.
Historical data from Reverse Market Insight, which reported the latest numbers Tuesday, indicate that there have been 19,159 HECMs endorsed by FHA during the first four months of this year.
Year-to-date endorsements were generated by 313 active FHA mortgagees, fewer than the 324 that were active through the same date in 2017.
Maintaining its long-held status as the No. 1 HECM originator was American Advisors Group — though volume plunged to 890 units from 1,158 in March.
The second-largest lender was Finance of America Reverse LLC, with business tumbling to 314 HECMs in April from 390 a month earlier.
After that was
271 endorsements at One Reverse Mortgage LLC. Business at the Quicken Loans Inc. subsidiary actually increased from 261 loans in March.
In fourth position was Reverse Mortgage Funding LLC, which was responsible for 241 HECMs, fewer than the 285 loans the prior month.
No. 5 was Synergy One Lending Inc. with 159 endorsements versus 168 the preceding month.
