The origination of federally insured reverse mortgages was lower last year as three of the sector’s players announced plans to exit the business. As its swan song, one of the departing trio grabbed the title of biggest reverse lender of 2011.
Reverse mortgage production has been virtually unchanged for three months now.
In December, the Federal Housing Administration endorsed 4,636 home-equity conversion mortgages. The total reflects both retail and wholesale activity.
Volume slipped from 4,654 in November, according to Reverse Market Insight. October’s endorsements totaled 4,653.
HECM endorsements in December 2010 were far higher at 6,554.
During all of 2011, reverse mortgage lenders originated 68,694 HECMs, drifting down from 72,748 in 2010.
Last year’s biggest HECM retail lender was Wells Fargo Bank, N.A., where annual production was 15,005 loans. Wells is winding down its reverse mortgage business.
Behind Wells was MetLife Bank, which generated 10,512 retail closings. MetLife Inc. has announced plans to sell MetLife Bank — though it plans to hold on to the reverse lending operation.
After that was One Reverse Mortgage LLC’s 4,619 in annual HECMÂ endorsements, Urban Financial Group’s 3,730 and Bank of America, N.A.’s, 3,609.
BofA also announced plans to exit the HECMÂ business, as did Financial Freedom — which was a top-10 HECM originator in 2010.
MetLife Bank’s monthly 1,321 endorsements were more than any other lender during December. MetLife closed 1,273 HECMs in November.
One Reverse followed with 419 December endorsements, more than 398 in November.
Urban Financial closed 357 HECMs last month and was trailed by 306 endorsements at Genworth Financial Home Equity.