The numbers might look soft for reverse mortgages, but experts say not to worry. The drop is attributable to specific market conditions that may not replicate moving forward.
The latest Home Equity Conversion Mortgage (HECM) Originators report from Reverse Market Insight (RMI), via Reverse Mortgage Daily, shows HECMs, better known as reverse mortgages, fell by 13.6% in December 2019.That’s the latest month for available figures.
The report states, “The fall was led by the wholesale endorsement segment of business, which experienced a decrease of 21.1% that month, while wholesale levels recorded a smaller decrease of 8.5%,” RMI president John Lunde cautioned. He said the numbers are skewed because “2018 endorsements were inflated by 2017 fundings leaking into the first few months of 2018.”
There’s no ennui about the drop, Lunde added. “Suffice to say that most everyone we’ve talked to in the industry lately was in much better spirits than a year ago,” he said.
Click the link to read more info about the reverse mortgage market.