HECM Volume: Some Major Lenders Buck Trend
Reverse mortgages have been a hot topic in the financial industry, with many lenders experiencing a decline in volume. However, amidst this trend, some major lenders have managed to buck the trend and record gains in June. This is a positive sign for the industry and shows that there is still potential for growth in the reverse mortgage market.
Finance of America (FOA) saw a 4.1% increase in its endorsement tally, finishing at 534 loans. Guild Mortgage also posted a gain of 19.1%, while South River Mortgage and HighTechLending also saw positive growth in June. These lenders have managed to attract clients and increase their market share despite the overall drop in volume.
According to RMI President John Lunde, the decline in case numbers could lead to a more tepid summer of originations. However, he also mentioned that individual choices that lenders make in appealing to potential clients can dictate their performance. Factors such as marketing spend, prioritizing endorsements, and geographic regions can all play a role in how lenders perform in the market.
Geographically, the Pacific/Hawaii region saw the least severe drop in volume, indicating that certain regions may be more resilient to industry trends. As FOA and Mutual of Omaha continue to compete for the top spot in the reverse mortgage industry, it will be interesting to see how their strategies play out in the coming months.
On the HMBS issuance front, levels remain historically low, with no expectation of reaching the records set in 2022. FOA claimed the top issuer spot with $159 million, while Longbridge Financial saw a dip in issuance to $110 million. New View partner Michael McCully mentioned that the industry is projecting to originate less than $6 billion in 2024, indicating a low volume environment.
Overall, the reverse mortgage industry is facing challenges with low volume, but there are still opportunities for growth for lenders who can adapt to the changing market conditions. As the industry continues to evolve, it will be crucial for lenders to stay competitive and innovative to attract clients and maintain their market share.
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