A monthly drop in federally insured reverse mortgage production impacted retail and wholesale channels alike. Overall business has since moved higher.
Retail originations accounted for 2,413 pf the total 4,160 home-equity conversion mortgages endorsed during June by the Federal Housing Administration
Retail activity slowed from the previous month, when FHA endorsed 2,651 reverse mortgages originated through the channel.
Using historical data provided by Reverse Market Insight, 15,187 HECMs were originated through the retail channel in the first-half 2014.
Retail volume declined from June 2013, a month that saw 3,002 retail HECMs endorsed by FHA.
On the wholesale side, production dropped to 1,747 from 1,842 in May and 2,335 in June 2013.
In the six months ended June 30, wholesale endorsements amounted to 12,461.
Overall business in June made it the slowest month since 2012.
But ReverseVision Executive Vice President Rob Katz said that the HECM numbers can be misleading because of a reporting lag of up to 60 days, and business has actually been trending higher this year.
The San Diego-based firm is behind the RV Exchange loan origination system.
“Lender prospect pipelines are rebuilding and new loan applications are rising at a modest, yet consistent pace after the large drawdown of Q4 2013,” Katz said in statement earlier this month. “Closings have also been consistently climbing from their low in January.”
Another recent report from Reverse Market Insight indicates overall HECM endorsements rose to 4,092 in July.
Reverse Market Insight provided a breakdown by lender that indicated 240 proprietary reverse mortgages were originated in June by American Advisors Group, more than any other lender.
With 185 proprietary reverse mortgage originations, Urban Financial Group landed the No. 2 spot in June.
No. 3 Liberty Home Equity Solutions Inc. closed 161 proprietary reverse mortgages, followed by Security One Lending/RMS’ 79 and Generation Mortgage Co.’s 77.
