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HECM endorsements slip in July as HMBS issuance stays near lows
July HECM endorsements totaled 2,034 loans, down from 2,064 in June, while HMBS issuance rose slightly to $463M from the prior month.
Home Equity Conversion Mortgage endorsements edged lower in July, according to data released Monday by New View Advisors. The top 15 originators endorsed 2,034 HECM loans last month, down from 2,064 in June, with Finance of America leading that group with 498 endorsements, followed by Mutual of Omaha Mortgage with 377 and Longbridge Financial with 351.
HMBS issuance remained subdued despite a modest uptick. HousingWire said HECM Mortgage-Backed Securities issuance rose slightly to $463M, while first participation totaled $305M and tail issuance came in at $158M. The report also notes that HMBS issuance is near the lowest levels seen since 2009.
The analysis also looked at production by HUD region. New View found HUD’s homeownership center in Santa Ana, California, led July endorsements with 660, while Atlanta posted 467, Philadelphia recorded 466, and Denver had 441.
HousingWire reports that HECM production has been muted even as higher interest rates would typically be expected to increase demand for federally insured reverse mortgages. The outlet said proprietary reverse mortgage products, which often come with higher rates, have been driving overall industry growth, citing features such as higher loan amounts, no upfront mortgage insurance premiums, and reduced need for a second appraisal.