Home Equity Conversion Mortgage (HECM) endorsements rose by 8.2 percent to 2,754 loans for the month of July 2019, with a lower 10-year SWAP interest rate and an extra day of business helping to provide a volume bump. This is according to the July HECM Lenders report compiled by Reverse Market Insight (RMI).
“The additional business day is probably the biggest factor in overall picture, as percentage wise it’s a higher increase than the loan volume,” said John Lunde, president of RMI in an email to RMD.
In terms of regional performance trends observed in July, the Southwest region saw a sizable 51.8 percent jump to 299 loans. Other standouts include the Rocky Mountain region which rose 38 percent to 287 loans, and the Midwest which increased by 31.5 percent to 213 loans.
“The regional changes are recoveries back to where each was 2-3 months earlier, so it might have been some noise in the endorsement process around the country more than anything else,” Lunde added. “The interest rate environment is more favorable for ongoing volume and future months’ endorsements.”
The biggest moves made within the top 10 HECM lenders include three firms bucking trends by turning in solid July performances. Reverse Mortgage Funding turned in a 23.7 percent increase for the month with 219 endorsements, followed closely by Synergy One Lending with a 22.1 percent increase to 177 loans.
American Advisors Group (AAG), the top lender, saw a 17.1 percent increase to 944 loans in July. Live Well Financial maintains a spot in the top 10 lenders for 2019 with only one endorsement in July, but its year-to-date total currently stands at 1,062 loans due to its endorsements before closing business.
Read the full HECM Lenders report for July at RMI for specific breakdowns and detailed regional performance data.
