A new report shows that September 2018 featured a drastic drop in reverse mortgage endorsements that came close to the all-time monthly low, following changes to the program in October 2017.
"According to the report, HECM endorsements dropped -9.9 percent to 2,874 loans in September. The report also notes that the decline was 'broad based,' showing very little difference between drops in the retail (-9.8 percent) and wholesale (-10.1 percent) markets," according to Reverse Mortgage Daily.
The report also revealed that there could be less interest in reverse products by larger FHA approved lenders. The drop did set a new record low of 1,695 loans on the retail side.
“Retail volume typically takes longer to adjust to changes, both good and bad,” said RMI founder and president John Lunde, according to RMD.
“[Second,] retail volume is typically [made up of] larger companies given that it’s defined here as FHA approved lenders originating HECM without a sponsor or principal/agent relationship.”
To learn more about the slide in reverse mortgage endorsements for September 2018, click on the image above.