Hardest hit areas revealed as endorsements decline
In the wake of dwindling case numbers in recent months, the mortgage market witnessed a significant downturn in Home Equity Conversion Mortgage (HECM) endorsements during February. The decrease, a notable -11.8%, marked a total of 1,900 loans endorsed, according to data released by Reverse Market Insight, Inc.
All regions experienced a decline in endorsements, with the Pacific/Hawaii region witnessing the smallest reduction at -6.2%, while the Great Plains region faced the most substantial decrease at -27.3%.
Top 10 lenders
Among lenders, some managed to navigate the challenging landscape more effectively than others. Finance of America Reverse LLC led the pack, with a total transaction count of 8,840 over the past year. Mutual of Omaha Mortgage Inc followed closely behind, with 6,293 transactions. Their steady performance underscores their reliability and appeal to borrowers, the report suggested.
Meanwhile, Longbridge Financial LLC, with 2,959 transactions, secured the third spot, showcasing its strong presence in the mortgage lending landscape. Liberty Reverse Mortgage maintained a respectable position with 1,426 transactions.
The list continued with other notable players such as: Fairway Independent Mortgage Corporation, Open Mortgage LLC, Guild Mortgage Company, Goodlife Home Loans, Cherry Creek Mortgage Co Inc, and Plaza Home Mortgage Inc, each contributing significantly to the industry.
Notable HECM endorsements
The regional breakdown of HECM endorsements underscored varying market dynamics across the United States:
- Pacific/Hawaii: Despite a 6.2% decrease, this region remains robust, indicating relative stability in the market.
- Southeast/Caribbean: With a decline of 10.8%, the region experienced a notable drop, reflecting broader economic uncertainties.
- Midwest: While the Midwest saw a milder decline at 4.3%, certain areas like Chicago faced a sharper downturn of -35.3%.
- New England: Notable growth was witnessed in Hartford at 35.1%, contrasting with declines in other areas like Boston, reflecting localized market trends.
- New York/New Jersey: The region saw mixed performances, with Newark experiencing a significant drop of -41.5%.
- Northwest/Alaska: Boise faced a steep decline of -45.7%, indicative of localized economic challenges.
The data points to a nuanced landscape where regional factors, market size, and economic conditions are shaping endorsement patterns. The next release of HECM endorsements is slated for the first week of April.
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