Collective business continued to fall for originators of federally insured reverse mortgages. Much of the deterioration was tied to the exit of a top-five lender, as some players managed to pick up the pace.
At only 5,188 home-equity conversion mortgages closed during May, reverse mortgage production was lower than any month since May 2010, when just 4,554 HECMs were originated.
The findings were gleaned from data reported by Reverse Market Insight.
Volume in April was 6,124 mortgages.
Year-to-date May 31, reverse lenders have generated 31,986 HECM endorsements by the Federal Housing Administration.
Business at Wells Fargo Bank, N.A., fell to 1,092 units from 1,253 in April.
MetLife Bank jumped to the No. 2 spot, with volume climbing to 932 HECMs last month from 616. After that was One Reverse Mortgage LLC, where activity edged up to 430 loans from 423.
Bank of America, N.A., which is in the process of exiting reverse mortgage lending, saw closings tumble to 332 during May from 896.
Urban Financial Group closed out the top five, with HECM originations rising to 280 loans from the prior month’s 228.
The active-lender count for the HECM sector has dropped to 1,220 from 1,734 last year.