Reverse Mortgage

Retail Reverse Mortgage Quantity Dominates Wholesale in Might


According to the latest HECM Originators Report from Reverse Market Insight (RMI), endorsements for Home Equity Conversion Mortgage (HECM) increased 3.8% in May 2021 to a total of 4,342 loans. The surge comes amid the generally increased activity in the reverse mortgage industry that has taken place over the past few months as the economic impact of the COVID-19 coronavirus pandemic continues as the volume topped the 4,000 loan threshold again for the month.

As for the demarcation between retail and wholesale volumes, the increase was dominated by the growth in retail recommendations, which rose 10.6% in May. The company’s wholesale segment lagged far behind retail, falling 5%, marking the fourth straight month that the company’s retail segment outperformed its wholesale counterpart.

Only three of the top 10 reverse mortgage lenders saw spikes in support for the month of May, with American Advisors Group (AAG) clearing the field up 32% to a total of 1,691 loans for the month, over 1,000 loans higher than the second-placed company. That company, Finance of America Reverse (FAR), was still no pushover with 621 loans for the month of May in either segment.

FAR maintained its leading position in wholesale with a network of 666 active brokers capturing 29.4% of the wholesale market. It is followed by Longbridge Financial with 187 active brokers conquering 14.4%.

HighTechLending, meanwhile, rose 16.2% to 86 loans, while Advisors Mortgage Group rose 10.5% to 63 loans. Every other top 10 lender saw cuts, albeit relatively minor ones, for the month.

Of the 10 national regions surveyed by the RMI based on data from public sources and its own in-house analysis and measurement tools, six had higher volumes in May, while these six were also the top 6 of 7 regions for the year are far.

The Central Atlantic region led the way in terms of percentage increases (up 24.5% to 239 loans); followed by the Northwest / Alaska region (up 16.7% to 496 loans) and Southwest (up 15.5% to 394 loans), which itself posted a 12-month high according to the RMI.

RMI President John Lunde previously explained for RMD that the HECM Originators report is useful for seeing the breakdown and health of retail and wholesale channels, which helps illustrate lender performance from a more individual and channel-specific perspective .

See the HECM Originators Report at RMI for specific breakdowns and regional performance data.