Reverse Originations Decline

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MORTGAGE EXPERT
10 · 06 · 10

Government-insured reverse mortgage production fell 10 percent last month. But two top-five originators managed an increase.

During September, reverse mortgage lenders originated 5,966 home-equity conversion mortgages, according to data reported by Reverse Market Insight. Volume was weaker than 6,645 loans originated in August.

Business was much stronger in September 2009, when HECM originations were 9,473.

Year-to-date Sept. 30 production was 54,356.

Looking just at retail originations, Wells Fargo Bank, N.A., solidly maintained its No. 1 ranking, with 1,412 HECMs originated last month. Business at the huge company fell from 1,880 loans in August.

A distant second was Bank of America, N.A., where activity fell to 548 HECMs from 677. MetLife Bank was also lower, with 351 closed loans in September compared to 397.

But business was better at One Reverse Mortgage LLC, with closings rising to 306 during September from the prior month’s 299 loans.

No. 5 Generation Mortgage Co. also pushed originations higher, with fundings nearly doubling to 163 HECMs.

The number of active reverse mortgage lenders has fallen to 2,067 from 2,905 last year.

Mortgage Expert

Mortgage Daily Staff

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