Reverse Mortgage Endorsements Slide By Extra Than Four % In June
Reverse Mortgage Daily decreases 4.4% to 4,160 loans, adding to the streak of 4,000+ loans per month.
The report, which cited Reverse Market Insight data, also showed that mortgage-backed securities saw just over $ 1 billion in HMBS issues in the four months following the LIBOR era.
“With the prevalence of H2H refi activity we’ve seen, it looks to me like the industry may test the limits of credit available for refinancing in some of the historically higher volume areas,” said RMI President John Lunde RMD. “So, [the industry is] Now I’m looking a little more at other parts of the country. “
“I view the last few months as high enough not to warrant any concern, but rather the beginning of the concern that the volume may be trending down more markedly,” added Lunde, according to RMD. “We’ve seen a decline in previous indicators like case numbers and applications, so we just have to see if this continues.”
“For pools of new issues, each month in 2021 outperforms the same month in previous years,” said Michael McCully, partner at New View Advisors, according to RMD. “The production of new issues in June was approximately $ 600 million in 2017, 2018, 2019 and 2020. In 2021 it was $ 823 million. For total emissions, the second quarter of 2021 was a record for the quarter with $ 3.16 billion in HMBS issued. “
Read about the latest data on reverse mortgages and endorsements and why refinance burnout may be imminent.