For the second consecutive month, lenders lifted production of federally insured reverse mortgages higher. Ocwen Financial Corp.’s subsidiary was responsible for the improvement.
Last month, 5,166 home-equity conversion mortgages were endorsed by the Federal Housing Administration.
Business picked up from January, when FHA insured 5,061 HECMs. It was the second consecutive monthly increase in originations.
Business was also better than in February 2013, when reverse mortgage lenders originated 4,833 HECMs.
The production data was reported Monday by Reverse Market Insight.
During the first two months of 2014, HECM endorsements amounted to 10,227 loans.
February 2014’s biggest HECM lender was Liberty Home Equity Solutions Inc., where volume soared to 838 units from the previous month’s 201 units. Liberty is owned by Ocwen.
No. 2 last month was American Advisors Group, where 754 HECMs were endorsed. Business edged up from 734 in January.
After that was Security One Lending/RMS, which generated 660 HECM closings versus 954 in January. Walter Investment Management Corp. is the parent of Security One.
The fourth-biggest HECM originator was Quicken Loans Inc.-subsidiary One Reverse Mortgage LLC, where volume fell to 357 loans from 470 a month earlier.
Endorsements at No. 5 Urban Financial of America LLC slipped to 332 HECMs from 351 in January.
The report indicated that 335 HECM lenders were active last month, fewer than 345 a year earlier.
