As the annual production of government-insured reverse mortgages has been diminishing, the landscape of the biggest players has undergone a facelift. But while this year’s production is on pace for yet another annual decline, lenders lifted lending activity in the latest month.
The Federal Housing Administration endorsed 4,436 home-equity conversion mortgages during November.
HECM business picked up from October, when just 3,745 HECMs were originated. But industry production has slowed since November 2011, when FHAÂ insured 4,654 reverse mortgages.
Based on historical data from Reverse Market Insight, HECM endorsements totaled 49,080 during the 11 months ended Nov. 30. This year is on pace for around 53,500 HECMÂ endorsements, fewer than the 68,694 in calendar-year 2011.
Annual HECM originations have declined each year since 2009, when FHA endorsed 111,924 HECMs.
During FHA’s fiscal-year 2013, which began on Oct. 1, HECM volume amounted to 8,181 endorsements.
Just 553 HECM lenders were active in November, down from 1,299 a year earlier.
In November 2010, Wells Fargo Bank, N.A., dominated the HECM market with 1,783 HECMs originated. A year later, MetLife Bank, N.A., was the leader with 1,273 government-insured reverse mortgages endorsed. Both companies have since exited the reverse mortgage business.
Last month’s leader, One Reverse Mortgage LLC, closed just 486 HECMs, though that was a leap from the 261 HECMs originated by the Quicken Loans Inc. subsidiary in October.
No. 2 in November was Security One Lending, where 477 HECMs were endorsed. Security One’s volume tumbled from 636 units the prior month.
Genworth Financial Home Equity followed with 396 HECMs insured during November, then 349 at American Advisors Group and 298 at Urban Financial Group.
