The Consumer Financial Protection Bureau (CFPB) on Wednesday released its annual report on residential mortgage lending activity and trends. While the vast majority of the data included across the mortgage industry specifically excludes reverse mortgages, it does take stock of the top 10 leading reverse mortgage lenders based on government origination volume data.
According to the report, here are the top 10 reverse mortgage lenders in 2022 based on Home Mortgage Disclosure Act (HMDA) data.
| Rank | Lender | Total Originations | Market Share |
| 1 | AAG | 16,035 | 27.1% |
| 2 | FAR | 10,895 | 18.4% |
| 3 | Mutual of Omaha | 5,844 | 9.9% |
| 4 | RMF | 5,586 | 9.4% |
| 5 | Longbridge | 5,531 | 9.3% |
| 6 | Liberty/PHH | 4,166 | 7.0% |
| 7 | Open Mortgage | 1,893 | 3.2% |
| 8 | Cherry Creek | 936 | 1.6% |
| 9 | HighTechLending | 882 | 1.5% |
| 10 | Fairway | 876 | 1.5% |
“In total, the top 10 reverse mortgage lenders accounted for close to 53,000 reverse mortgage originations, or approximately 88.8%, of all reverse mortgage originations reported under HMDA in 2022,” the report said.
American Advisors Group remained the top originator for the year followed by Finance of America Reverse (FAR), two companies that now share the same corporate roof after Finance of America Companies (FOA) acquired AAG in a deal that closed earlier this year. Over 27% of the market share belonged to AAG in 2022, followed by FAR’s share of more than 18%.
The data included in the CFPB report includes only those lenders reported under HMDA, accounting for differences in the 2022 top 10 ranking as tabulated by Reverse Market Insight (RMI) this past January that took stock of all Federal Housing Administration (FHA)-approved lenders.
The data also breaks out the number of minority borrowers served by each lender, with Open Mortgage overall serving the highest percentage at 23.2%, well above the total industry average of 11.7%. That company also served the highest percentage of borrowers in low-to-middle-income (LMI) neighborhoods at 26.7%, also above the industry average of 18.8%.
None of the top 10 lenders had a rate serving non-Hispanic whites lower than 61%, and the average among both the top 10 lenders and the full industry is 68.2%, according to the data.
Broader findings from the report included a determination of generally higher costs and fees absorbed by borrowers last year, as well as cash-out refinances making up a majority of refinance originations in 2022.
The report also found that home equity lines of credit (HELOCs) were the only form of refinancing to rise when compared to 2021 levels, while average monthly mortgage payments increased more than 46%.
In a statement accompanying the report, CFPB Director Rohit Chopra described how home equity plays into the forward-looking posture of the CFPB.
“We see a growing need for borrowers to understand their options when it comes to tapping their home equity, as well as the factors they should consider when purchasing discount points,” Chopra said. “[W]e will continue to work with federal and state law enforcement to ensure that mortgage market participants are adhering to appropriate consumer protection and fair lending laws.”
