New lows, here we are. HECM endorsements dropped -17.4% to 2,553 loans in November, setting a new low after the October 2017 product changes.
- Just one region out of the ten tracked rose and that was the smallest, Great Plains, up 3.2% to 65 loans
- A good example of how far the industry has fallen is Pacific/Hawaii, which has dropped -68.2% from January to settle at just 651 loans
As you might expect, many lenders had a rough month too, with all of the top 10 experiencing declines.
- The industry is less dependent on HECMs than it has been in over a decade, with proprietary products surging this year in the wake of HECM product changes and subsequent lender innovation
- The best case scenario is that the most recent HECM volume drop is related to borrowers shifting from HECM to proprietary, but much darker scenarios aren’t hard to imagine
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.