Good news for mortgage professionals in the reverse mortgage business as endorsements skyrockets up 15.8 percent from July to August. It's not just wholesalers who are benefitting from the jump either. The retail side also saw significant gains, according to new reports.
"Home Equity Conversion Mortgage originators — including those approved by the Federal Housing Administration and their non-approved counterparts — generated 4,923 loans in the month of August, according to the most recent data from Reverse Market Insight. That’s a major rally after a weak July that saw a 12.0% drop from June," according to Reverse Mortgage Daily.
"Retail endorsements spiked by 17.8% between July and August, with a still-strong 13.6% gain on the wholesale side."
While this is great news for reverse mortgage originators at the moment, experts say that come October 2, "the switch to new principal limit factors" may cause a decline. As of this point, it's now just a waiting game to see what kind of effect it will have on future reverse mortgage originations.
To learn more about the bump in reverse mortgage endorsements, click on the image above.