Loan originators closed fewer federally insured reverse mortgages last month than in any other month in at least six years.
Home-equity conversion mortgages that were endorsed by the Federal Housing Administration in August numbered 3,256.
In fact, based on historical data from Reverse Market Insight, last month’s pace of endorsements was the slowest since November 2008 — a month when 2,996 HECMs were endorsed and a point when Bank of America, MetLife Bank and Wells Fargo were all still originating HECMs.
During the eight months ended Aug. 31, FHA endorsed 34,788 HECMs. For its fiscal-year 2014, which began on Oct. 1, 2013, FHA has handed out 47,889 HECM endorsements.
RMI said that there were 456 active HECM lenders in August, more than the 444 previously reported for a month earlier but down from 519 a year earlier.
Last month’s biggest HECM lender was American Advisors Group, where 779 HECMs were endorsed.
The second-biggest HECM originator in August was One Reverse Mortgage LLC, which saw 392 endorsements. Unlike the overall industry, One Reverse had a 5 percent increase over July.
No. 3 RMS/Security One Lending had 326 endorsements during the latest period, followed by Urban Financial of America LLC’s 220 and Liberty Home Equity Solutions Inc.’s 166.