Reverse Mortgage Volume And Securities Issuance Trend Lower In December
When assessing December’s Home Equity Conversion Mortgage (HECM) volume data for December 2023, Reverse Market Insight (RMI) used a choice word as the title for its commentary: “thud.”
Amid an already challenging operating environment observed throughout 2023, both HECM endorsement volume and HECM-backed Securities (HMBS) issuance closed out the year on a low note, with both metrics falling lower from the month before, according to data from RMI and New View Advisors.
Endorsement volume falls slightly
While not a pronounced drop, HECM endorsements fell 3% to end the month with 2,190 loans, but that general drop came with a few notable exceptions according to RMI. Geographically, four of the ten tracked regions outperformed figures from the prior month, while four of the top 10 lenders also posted modest gains in the final month of the year.
One of the top 10 lenders that posted gains, however, was Open Mortgage. In its commentary, RMI speculated that this could be due to the company aiming to close out its pipeline of reverse mortgage loans in process following the announcement of the reverse mortgage division’s closure in November, as first reported by RMD.
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