Federally insured reverse mortgage originations took a big hit last month, falling to the lowest level this year.
Home-equity conversion mortgages endorsed by the Federal Housing Administration totaled 4,527 in September.
Volume sank from a month earlier, when 5,382 HECM endorsements were reported.
In fact HECM production hasn’t been this slow since December 2012, when just 3,912 endorsements were registered.
But business picked up from September 2012, when industry-wide HECM originations amounted to 3,706 loans.
The production statistics were reported by Reverse Market Insight.
Year-to-date Sept. 30, reverse mortgage lenders have originated 53,777 HECMs.
Last month’s biggest HECM lender was American Advisors Group with 773 loans endorsed. But business at American Advisors fell from 925 units in August.
No. 2 Security One Lending-RMS, however, saw an uptick in volume — to 604 HECMs versus the previous month’s 570.
After that was One Reverse Mortgage LLC, where endorsements slipped to 452 reverse mortgages from 465 in August.
Liberty Home Equity Solutions Inc. landed in the fourth spot with 407 closings, tumbling from the previous month’s 658.
No. 5 Urban Financial Group generated 301 HECM endorsements, more than 277 in August.
Reverse Market Insight reported that 523 HECM lenders were active during the latest period, a few less than 536 the prior year.