Government-insured reverse mortgage production was down again for both retailers and wholesalers, though wholesale has slowed for more consecutive months.
Out of 3,639 home-equity conversion mortgages endorsed by the Federal Housing Administration in May, retail-originated loans accounted for 2,034 of the total.
That wound up being less than during the previous month, when retail loan originators were responsible for generating 2,465 HECM endorsements by FHA.
It was the second consecutive month-over-month decline and also fewer than the 2,477 retail HECM endorsements in the same month last year.
In the five months ended May 31, 2016, retail HECM endorsements totaled 12,012.
Reverse Market Insight delivered the date in its monthly newsletter.
HECM activity also slowed from the wholesale channel, with endorsements falling to 1,605 from 1,775 in April and
1,793 in May 2015.
Wholesale production has declined each month since February, when 1,932 HECMs were endorsed.
From Jan. 1 through May 31 of this year, wholesale HECM endorsements amounted to
8,859.
RMI’s data indicate that proprietary reverse mortgage production during May 2016 at the 10-largest originators it surveyed
sank 19 percent from a month earlier and was down 24 percent from a year earlier.
Finance of America Reverse LLC closed 224 proprietary reverse mortgages, more than 212 in April and the most of any surveyed lender.
With 102 proprietary reverse mortgages originated in May, Reverse Mortgage Funding LLC landed in the second spot. Business was three units shy of the prior month.
No. 3 Liberty Home Equity Solutions Inc. saw proprietary production plummet
to 96 loans from 243 in April.
At 83 units for May, American Advisors Group closed eight fewer units than a month previous and secured fourth position among its peers.
No. 5
Live Well Financial Inc. saw proprietary business slow to 44 from 54 in April.
