Originators of federally insured reverse mortgages pushed new business higher in August, though production was well short of a year earlier. The number of companies originating reverse mortgages has plummeted by more than half over the past year.
Last month, the Federal Housing Administration endorsed 4,122 home-equity conversion mortgages.
Business picked up from July, when HECM production amounted to 3,868 endorsements.
HECM fundings have tumbled from August 2011, when reverse mortgage lenders originated 5,807 loans, according to monthly data released by Reverse Market Insight.
From Jan. 1 through Aug. 31, FHA endorsed 37,193 HECMs based on historical data.
American Advisors Group was the biggest HECM lender last month with 547 endorsements. Business more than doubled from July at American Advisors.
No. 2 was One Reverse Mortgage LLC, where HECM originations inched up to 418 units in August from the previous month’s 401.
Genworth Financial Home Equity was next with 388 HECM endorsements in August, then Security One Lending’s 338 and Urban Financial Group’s 309.
The number of active HECM lenders last month was 520, less than half of the 1,270 reported for a year earlier.