The volume of federally insured reverse mortgage production last month descended to the lowest level since the summer of 2014.
During the entire month of May, there were
3,646 home-equity conversion mortgages endorsed by the Federal Housing Administration.
The last time that the number of HECM endorsements
was this low was in August 2014, when 3,256 loans were endorsed by FHA.
That is based on historical data from Reverse Market Insight, which reports the data monthly.
During the five months ended May 31, 2016, FHA has endorsed 20,893 reverse mortgages.
Last month’s endorsements were generated by 373 FHA mortgagees, fewer than the 388 active HECM lenders a year earlier.
American Advisors Group was the busiest HECM originator, with 796 endorsements in May 2016 — though that was way down from 966 the prior month.
No. 2 Finance of America Reverse LLC was responsible for 330 HECM endorsements, rising from 270 in April.
After that was One Reverse Mortgage LLC’s 316 loans, no different than the previous month.
Reverse Mortgage Funding LLC originated 275 HECMs in May, thirteen more than a month earlier.
No. 5 was Liberty Home Equity Solutions Inc., where volume plunged to 225 units from 446 in April.