Although monthly originations of government-insured reverse mortgages were off less than 5 percent at wholesalers, retailers experienced a more than 7 percent drop.
Retail originators of home-equity conversion mortgages were responsible for 2,033 of the 3,350 HECMs endorsed by the Federal Housing Administration during July.
Endorsements from the retail channel retreated from 2,190 the previous month. The decline was even more significant versus a year previous, when the total was 2,694.
The numbers were reported by Reverse Market Insight.
On the wholesale side,
endorsements dropped to 1,497 from 1,573 in June and tumbled from 2,331 in July 2015.
Overall HECM endorsements by FHA declined more than 6 percent between June and July of this year. Compared to July 2015,
HECM volume sank 30 percent.
But among
proprietary reverse mortgage lenders surveyed by RMI, originations inched up 1 percent from June 2016 — though there was a whopping 47 percent decline from the same month last year.
RMI’s data indicate that Finance of America Reverse LLC was the biggest proprietary reverse mortgage originator during July 2016 with 245 units. Business slowed, however, from 162 a month earlier.
No. 2 Reverse Mortgage Funding LLC saw volume decline to 98 loans from 120 in June.
After that was Liberty Home Equity Solutions Inc., where proprietary production tumbled to 90 units last month from the previous month’s 132.
American Advisors Group landed in fourth position during July with production dropping to 57 proprietary reverse mortgages from 78 the previous month.
No. 5 RMS/Security One Lending pushed volume up to 23 units from just 10 in June.
