The latest count has a dramatic reduction in the number of lenders that originate federally insured reverse mortgages. But even with fewer originators, the sector still managed a monthly increase in volume.
Home-equity conversion mortgage production climbed to 6,904 loans last month from January’s 6,464, Reverse Market Insight reported.
HECMs, which are insured by the Federal Housing Administration, were off from 7,024 closings during February 2010.
So far this year, 13,368 HECM have been funded.
Based only on retail originations, Wells Fargo Bank, N.A.’s, 1,662 HECM fundings were more than any other lender last month. Wells’ volume was off slightly from 1,687 in January.
Bank of America, N.A.’s, 777 followed, declining from 843 the month before.
Volume slipped to 444 from 466 At No. 3 MetLife Bank, while One Reverse Mortgage LLC was next with production deteriorating to 295 HECMs from the prior month’s 322 loans.
No. 5 Generation Mortgage Co. managed a gain — closing 140 HECMs in February versus January’s 122 units.
Reverse Market Insight said that the number of active HECM lenders has fallen to 959 from last year’s 1,311. In the yearend 2010 report, the newsletter indicated that active lenders had fallen to 2,222 from the previous year’s 3,123.
