In case you haven’t been paying attention these last few months, HECM volume is seriously hurting after the Oct 2, 2017 changes from FHA. Volume was down a further -22.2% in April to 3,345 loans.
The question now is whether this is the bottom for endorsements and based on funding data collected through our industry data repository I’d suspect we’re close but might not be there yet. Applications appear to have bottomed in December but with fundings continuing to make lower lows in March it’s too early to definitively say we’re on the road to recovery yet.
Meantime, let’s dive into the (ugly) numbers from April:
- All 10 geographic regions were down by double digit percentages, with New York/New Jersey bearing the least pain at -17%
- Fairway turned in the best lender showing, rising 35.7% to 95 loans and 10th place in our trailing twelve month rankings
- Alaska (represented in FHA field offices by Anchorage) is up 63.6% for the year, but it’s still just 18 loans
- If you’re seeking a bit more volume, Hawaii (Honolulu in our table) is up 50% to 93 loans through the first four months
If your company is FHA approved check out the rankings on page 5 of the report below. If your company is not FHA approved, watch out for our next edition of HECM Originators to find your ranking!
Click the image below for the full report.