It’s been more than a decade since the production of new federally insured reverse mortgages came in as low as it did last month.
Home-equity conversion mortgages endorsed by the Federal Housing Administration numbered 2,838 during June, according to Reverse Market Insight.
Last month turned out to be the slowest month on record based on RMI monthly endorsement volume statistics going as far back as December 2008.
Data from the Department of Housing and Urban Development suggest that it was likely the slowest pace of HECM production since 2004, when the annual 37,788 endorsements likely included at least one month that was slower than last month’s 2,838 level. Several months in 2003, when just 16,224 HECMs were endorsed, were likely slower than in June of this year.
FHA endorsed 3,359 reverse mortgages in May and 4,837 in June 2017. For the entire first-half 2018, there have been 25,356 HECMs endorsed, while the total came to 39,400 since fiscal-year 2018 began on Oct. 1, 2017.
RMI reported that this year’s HECMs have been originated by 327 FHA mortgagees, fewer than the 359 that had been active through mid-2017.
While American Advisors Group maintained its No. 1 position, its volume decreased to 874 HECMs from 1,008 in May.
Endorsements at Finance of America Reverse LLC fell to 275 from 302 in last month’s report.
One Reverse Mortgage LLC was responsible for 214 of the latest HECM endorsements, off just two units from the prior month.
With 191 units, Reverse Mortgage Funding LLC was the fourth-largest mortgagee and less active than when it generated 255 HECM endorsements the preceding month.
FHA endorsed 167 HECMs for Synergy One Lending Inc., down 10 loans from May.
