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HECM endorsements fall 5.7% in August as top lenders dominate
The top 100 lenders endorsed 1,919 HECM loans in August, a year-to-date decline that HousingWire links to lower overall production and competition from proprietary reverse products.
HousingWire reports that federally insured reverse mortgage endorsements declined in August, with the nation’s top 100 lenders endorsing 1,919 HECM loans, down 5.7% from July. The outlet said the month marked the lowest August total in years, citing HECMWorld.com data compiled by Reverse Market Insight.
HousingWire added that Finance of America was the No. 1 HECM endorser in August with 433 endorsements, though that volume fell 13.2% from July. Mutual of Omaha Mortgage ranked second with 395 endorsements, up 3.7%, while Longbridge Financial took third with 357 endorsements, up 1.7%.
According to HousingWire, the combined market share of the top three lenders, Finance of America, Mutual of Omaha and Longbridge, held at roughly 62% last month. Over the first eight months of the year, HECM endorsements declined 10.3% versus the same period last year.
HousingWire also highlighted that Minneapolis-based Luminate Bank posted a rise, with 37 endorsements in August up 48% from July, landing it eighth among all lenders. The outlet said Luminate announced the acquisition of select assets of First State Mortgage Services, and that reverse mortgage production is facing continued pressure from proprietary reverse mortgages, senior-focused HELOCs and home equity investments, based on comments from New View Advisors partner Michael McCully.