The impact from the loss of Bank of America, N.A., on the reverse mortgage sector was felt last month as reverse production at the company virtually disappeared. But volume at Wells Fargo Bank, N.A., shot up by half — pushing overall origination of home-equity conversion mortgages higher and leaving a gaping hole when the company completes its exit from the reverse lending business.
The Federal Housing Administration endorsed 5,857 HECMs during June, according to data reported by Reverse Market Insight.
Year-to-date June 30 activity added up to 37,843 HECMs.
Business at Wells Fargo jumped to 1,639 HECMs from May’s 1,092. But last month’s announcement from Wells Fargo Home Mortgage that it would exit the reverse mortgage business means that June’s HECM volume from all lenders would have been 28 percent lower had Wells not been in the game.
HECM volume at MetLife Bank climbed to 1,079 last month from 932 fundings during May. The level of activity made MetLife the second-biggest HECM originator and positions it to be the biggest HECM lender when Wells completes its exit.
Urban Financial Group came in at No. 3 in June with 433 loans originated, then One Reverse Mortgage LLC’s 327 and Genworth Financial Home Equity’s 228 HECMs.
At BofA, HECM production plummeted to seven units from May’s 332.
Reverse Market Insight said that the number of HECM originators operating in the country has fallen to 1,254 this year from 1,806 last year.