Monthly reverse mortgage production has fallen to the lowest level in at least two years. The decline came despite in increase in retail activity at two of the five biggest retailers.
May volume came in at 4,554 loans, Reverse Market Insight reported. Activity sank 17 percent from 5,511 reverse mortgages closed in April and was down by nearly half from 8,396 loans funded in May 2009.
Volume has never been this low during the 25 months that RMI has reported reverse mortgage statistics.
In line with declining production, the number of active reverse mortgage lenders has fallen to 1,733 from 2,334 last year.
On just a retail basis, Wells Fargo Bank, N.A., was the biggest lender during May, with 991 loans fundings. Volume fell from the prior month’s 1,179.
No. 2 Bank of America, N.A., saw business rise to 542 from April’s 465, while No. 3 One Reverse Mortgage LLC closed 214 units, falling from 261.
The fourth biggest retail reverse mortgage lender was MetLife Bank, where May originations increased to 203 from 180, and No. 5 Urban Financial Group saw volume tumble to 123 from April’s 206.
