The biggest originator of government-insured reverse mortgages did more business last month than the next three biggest lenders combined. But a huge drop at Ocwen Financial Corp.’s reverse subsidiary dragged down volume for the entire sector to the worst level since 2012.
Mortgage lenders obtained 4,170 endorsements on home-equity conversion mortgages from the Federal Housing Administration in April.
Government reverse mortgage business slowed to the lowest level since December 2012, when FHA endorsed 3,912 HECMs.
The monthly data was provided by Reverse Market Insight.
During the first four months of this year, FHA has endorsed 19,015 HECMs.
The biggest HECM originator last month — by a long shot — was American Advisors Group, where production shot up to 1,194 units from 789 in March.
American Advisors recently bolstered its reverse mortgage production with the acquisition of Reverse Mortgage USA, which was closing at least a hundred units a month prior the merger.
No. 2 was Quicken Loans Inc.-subsidiary One Reverse Mortgage LLC, which originated 409 HECMs in April, three more than a month earlier.
After that was Liberty Home Equity Solutions Inc., with 337 endorsements. Activity at the Ocwen-subsidiary plummeted from 968 in March.
The fourth-largest HECM lender, Urban Financial of America LLC, generated 295 endorsements last month, fewer than the 346 HECMs closed in March.
RMS/Security One Lending landed the fifth spot with 236 HECMs funded in April, a few less than 243 a month earlier. Both Urban Financial and RMS/Security One are affiliated with Walter Investment Management Corp.