For the fourth month in a row, originators of government-insured reverse mortgages have seen loan production slow. The decline was most apparent at Walter Investment Management Corp.’s reverse lending unit.
During May, there were 4,273 home-equity conversion mortgages that were endorsed by the Federal Housing Administration.
That was according to Reverse Market Insight.
Originations retreated from the previous month, when 4,497 loans were endorsed.
In fact, new HECM business has been down each month since January of this year, when 4,946 loans were endorsed.
Activity has also softened since May 2014, when volume totaled 4,498 units.
In the five months ended May 31, 2015, HECM originators have generated 23,103 in loan production. Since starting its fiscal-year 2015 on Oct. 1, 2014, FHA has endorsed 37,307 HECMs.
Last month’s activity was generated by 387 FHA mortgagees, fewer than the 416 active lenders a year ago.
American Advisors Group was the No. 1 HECM originator in May 2015 with 1,010 endorsements, though that was fewer than the 1,078 originated in April.
No. 2 Quicken Loans Inc.-subsidiary One Reverse Mortgage LLC saw business increase to 518 units during May from 439 the prior month.
At Liberty Home Equity Solutions Inc., a subsidiary of Ocwen Financial Corp., endorsements also accelerated — increasing by 14 from April to 321.
Urban Financial of America LLC landed in the fourth spot with 270 endorsements, tumbling from 338 in April.
No. 5 RMS/Security One Lending saw volume plunge to 244 endorsements in May from 423 a month earlier. RMS is a subsidiary of Walter Investment.