Archive for the ‘HECM Program’ Category

HECM Endorsement Analytics – September 2021

Wednesday, October 13th, 2021

4,326 HECM loans were endorsed in September, bouncing back after last month to the average pace seen for the past year and half. Our report can be found here: NV Endorsement 2021_09. Of the top lenders, AAG endorsed 1,445 loans, increasing endorsement volume 21+% from August, while PHH endorsed 303 HECMs, more than doubling last month’s 143. Total volume increased 17% versus August, another reminder that one month of data, especially endorsement count, is not telling of a market trend.

HUD’s August Endorsement Snapshot Report is now available on its website. Volume dropped across all product types, but HECM-to-HECM refis remained close to 50% of all endorsements.

New View Advisors continues to offer its Who Buys What From Whom (WBWFW) endorsement report subscription. The report compiles publicly available Ginnie Mae data to show which HMBS issuers buy HECMs from which lenders.

The WBWFW report includes:

*Top Originators – a ranking by original HECM UPB of all lenders over the last twelve months
*WBWFW – an alphabetical cross-reference between every lender and the HMBS issuer that securitizes its loans
*Top 100 Trends – a breakdown of loan sales by month, by Top-100 lender, by HMBS issuer.

Edited samples from this month’s WBWFW report are at the end of our endorsement writeup. These reports together provide accurate insight for sales and marketing teams to learn just who’s buying what from whom. The dataset is more complete and timely than what endorsement analysis alone can show.

New View Advisors and Recursion Reverse Mortgage Prepayment Indices – September 2021

Tuesday, October 12th, 2021

New View Advisors and Recursion September 2021 expanded HECM reverse mortgage prepayment indices can be found here: New View Advisors Recursion Cohort Speeds 09_2021. The indices are derived from underlying HECM data in HMBS made public by Ginnie Mae, as well as private sources. This new expanded set of prepayment data is calculated using dollar principal balance, not unit count.

The enhanced data set shows current trends in prepayment activity by product type and Principal Limit Factors (PLFs), and for current 12-month LIBOR PLFs by Expected Rate. HECM loans with higher Expected Rates originated in the year or so prior to the precipitous fall in interest rates brought on by the pandemic are experiencing higher prepayment rates. Therefore, we segregate indices for recent production 12-month LIBOR PLFs into Expected Rates greater than 4% and Expected Rates less than or equal to 4%.

Prepayment speeds are expressed as annualized percentages in three categories: Total Payoffs, Payoffs Other Than Assignments, and Payoffs from Assignment. For each category, we calculate the 1-month, 3-month, 6-month and 12-month CPR, or annual rate of prepayment.

For HMBS pools backed by adjustable rate HECMs using the Constant Maturity Treasury (CMT) index, prepayment speeds will continue to populate as more of these HMBS are issued.

HECM Endorsement Analytics – August 2021

Monday, September 13th, 2021

3,679 HECM loans were endorsed in August, a 14.3% drop from July and the first month below 4,000 units since November 2020. Our summary report can be found here: NV Endorsement 2021_08.  Most of the top originators had significantly fewer endorsements, notably AAG with 1,194 and RMF with just 427, 22.8% and 26.6% declines from July, respectively.

HUD’s July Endorsement Snapshot Report is now available on its website. HECM refi volume hit another milestone, exceeding 50% of all endorsements for the first time. Next month’s data will show if the August endorsement drop was driven by less refinance activity. Refinance burnout could have a material impact on overall endorsement volume.

New View Advisors continues to offer its Who Buys What From Whom (WBWFW) report as part of our endorsement report subscription. The report compiles publicly available Ginnie Mae data to show which HMBS issuers buy HECMs from which lenders.

The WBWFW report includes:
–Top Originators – a ranking by original HECM UPB of all lenders over the last twelve months
–WBWFW – an alphabetical cross-reference between every lender and the HMBS issuer that securitizes its loans
–Top 100 Trends – a breakdown of loan sales by month, by Top-100 lender, by HMBS issuer.

Edited samples from this month’s WBWFW report are at the end of our endorsement writeup. These reports together provide accurate insight for sales and marketing teams to learn just who’s buying what from whom. The dataset is more complete and timely than what endorsement analysis alone can show.

HECM Endorsement Analytics – July 2021

Saturday, August 7th, 2021

HECM endorsement activity has been steady over the past 14 months. In July, 4,293 HECM loans were endorsed. AAG, RMF, and FAR, who originated 1,547, 582, and 333 loans respectively, continue to lead our top originators table and account for 53.5% of total endorsement volume. Our report can be found here: NV Endorsement 2021_07.

HUD’s June Endorsement Snapshot Report is now available on HUD’s website. Refis reached almost 49% of all endorsements, for the first time exceeding the number of traditional HECMs endorsed in a given month.

New View Advisors continues to offer its Who Buys What From Whom (WBWFW) report as part of our endorsement report subscription. The report compiles publicly available Ginnie Mae data to show which HMBS issuers buy HECMs from which lenders.

The WBWFW report includes:
*Top Originators – a ranking by original HECM UPB of all lenders over the last twelve months
*WBWFW – an alphabetical cross-reference between every lender and the HMBS issuer that securitizes its loans
*Top 100 Trends – a breakdown of loan sales by month, by Top-100 lender, by HMBS issuer.

Edited samples from this month’s WBWFW report are at the end of our endorsement writeup. These reports together provide accurate insight for sales and marketing teams to learn just who’s buying what from whom. The dataset is more complete and timely than what endorsement analysis alone can show.

HECM Endorsement Analytics – June 2021

Thursday, July 1st, 2021

4,160 HECM loans were endorsed in June 2021, 4.4% lower than May’s 4,350. Endorsement count has been over the 4,000 mark seven consecutive months, something not seen since 2017. Origination volumes of larger lenders have been mostly steady over the past several months. Smaller lenders are experiencing more volatility. Money House originated 82 loans, 83% higher than its 12-month average, while TMAC originated just 3 loans, 91% lower than its 12-month average. Our report can be found here:  NV Endorsement 2021_06.

HUD’s May Endorsement Snapshot Report is now available on their website. H2H refis are now almost 45% of all endorsements. South River Mortgage continues to be a strong wholesale originator; it originated 126 loans sponsored by another party. It is the second consecutive month South River Mortgage leads in this category.

New View Advisors continues to offer its Who Buys What From Whom (WBWFW) report as part of our endorsement report subscription. The report compiles publicly available Ginnie Mae data to show which HMBS issuers buy HECMs from which lenders.

The WBWFW report includes:
Top Originators – a ranking by original HECM UPB of all lenders over the last twelve months
WBWFW – an alphabetical cross-reference between every lender and the HMBS issuer that securitizes its loans
Top 100 Trends – a breakdown of loan sales by month, by Top-100 lender, by HMBS issuer.

Edited samples from this month’s WBWFW report are at the end of our endorsement writeup. These reports together provide accurate insight for sales and marketing teams to learn just who’s buying what from whom. The dataset is more complete and timely than what endorsement analysis alone can show.

HECM Endorsement Analytics – May 2021

Tuesday, June 1st, 2021

4,350 HECM loans were endorsed in May. Monthly endorsement count has remained above the 4,000 mark for six consecutive months, something not seen since the publication of Mortgagee Letter 2017-12. The Santa Ana Homeownership Center (HOC) saw the largest month-over-month endorsement increase of 5.6%; the other three HOCs each experienced month-over-month increases of more than 2.0%. Our report can be found here: NV Endorsement 2021_05.

HUD’s April Endorsement Snapshot Report is now available on their website. Despite interest rates creeping up in 2021, HECM for refinance continues to play a dominant role in endorsement activity; for the first time, refis crossed the 40% of endorsements threshold.

New View Advisors continues to offer its Who Buys What From Whom (WBWFW) report as part of our endorsement report subscription. The report compiles publicly available Ginnie Mae data to show which HMBS issuers buy HECMs from which lenders.

The WBWFW report includes:

Top Originators – a ranking by original HECM UPB of all lenders over the last twelve months

WBWFW – an alphabetical cross-reference between every lender and the HMBS issuer that securitizes its loans

Top 100 Trends – a breakdown of loan sales by month, by Top-100 lender, by HMBS issuer.

Edited samples from this month’s WBWFW report are at the end of our endorsement writeup. These reports together provide accurate insight for sales and marketing teams to learn just who’s buying what from whom. The dataset is more complete and timelier than what endorsement analysis alone can show.

HECM Endorsement Analytics – April 2021

Friday, May 7th, 2021

4,187 HECM loans were endorsed in April, less than a percent lower than last month’s 4,220 units.  The top three lenders combined saw 213 fewer endorsements than March, while smaller lenders’ endorsement counts rose, making up most of the difference.  By region, only Denver saw an increase, with 117 endorsements more than March.  Every other region experienced a decrease in endorsement volume.  Our report can be found here: NV Endorsement 2021_04

HUD’s March Endorsement Snapshot Report is now available on HUD’s website.  South River Mortgage, based in MD, has emerged as a leading wholesale originator.  Founded in 2019, the company originated only a handful of HECMs until 2020 but has originated 100+ loans each month in 2021.  Over the past 12 months, South River posted 800 HECM endorsements sponsored by another party, second only to Fairway Independent Mortgage Corporation.

New View Advisors continues to offer its Who Buys What From Whom (WBWFW) report as part of our endorsement report subscription.  The report compiles publicly available Ginnie Mae dollar volume data to show which HMBS issuers buy HECMs from which lenders.  The WBWFW report includes:

Top Originators – a ranking by original HECM UPB of all lenders over the last twelve months

WBWFW – an alphabetical cross-reference between every lender and the HMBS issuer that securitizes its loans

Top 100 Trends – a breakdown of loan sales by month, by Top-100 lender, by HMBS issuer.

Edited samples from this month’s WBWFW report are at the end of our endorsement writeup. These reports together provide accurate insight for sales and marketing teams to learn just who’s buying what from whom. The dataset is more complete and timely than what endorsement analysis alone can show.

HECM Endorsement Analytics – March 2021

Monday, April 5th, 2021

March HECM Endorsements came in at 4,220 units. Over the past year, HECM endorsement activity has been fairly stable, averaging slightly below 4,000 endorsements each month. Our analysis can be found here:  NV Endorsement 2020_03.  The top eight originators now account for 79% of endorsement volume. American Advisors Group has approximately one third of the market, followed by Finance of America Reverse and Reverse Mortgage Funding, each accounting for approximately 10% of endorsement count volume.

HUD’s February Endorsement Snapshot Report is also now available on HUD’s website. HECM to HECM refis dropped slightly, to 1,434 endorsements from January’s record high 1,651 endorsements. 10-year treasury rates continued to climb in March, however HECM endorsement volume does not yet reflect any impact from rising interest rates.

New View Advisors continues to offer its Who Buys What From Whom (WBWFW) report as part of our endorsement report subscription. The report compiles publicly available Ginnie Mae data to show which HMBS issuers buy HECMs from which lenders. The WBWFW report includes:

♦Top Originators – a ranking by original HECM UPB of all lenders over the last twelve months
♦WBWFW – an alphabetical cross-reference between every lender and the HMBS issuer that securitizes its loans
♦Top 100 Trends – a breakdown of loan sales by month, by Top-100 lender, by HMBS issuer.

Edited samples from this month’s WBWFW report are at the end of our endorsement writeup. These reports together provide accurate insight for sales and marketing teams to learn just who’s buying what from whom. The dataset is more complete and timely than what endorsement analysis alone can show.

HMBS March 2021; HECM MMI Fund: As Predicted

Thursday, April 1st, 2021

HMBS issuance remained fairly strong at $858 million in March 2021, the first month of the post-LIBOR era. February 2021 was the last month in which Ginnie Mae allowed pooling of new HMBS pools backed by first participations of LIBOR-based HECMs. The Constant Maturity Treasury “CMT” index is now the only index for new adjustable rate HECM loans and will remain so until a transition to another index, likely the Secured Overnight Financing Rate, or “SOFR.” 91 pools were issued in March, including 35 first-participation CMT pools. Before January 2021 no new first-participation CMT pools had been issued in many years.

Earlier this week, the HECM industry received good news that FHA’s MMI Fund now shows a surplus of 2.39% for the HECM portion of the Fund. This report comes only four months after FHA claimed the HECM program was a drag on its mortgage insurance program and was being “subsidized” by their forward mortgage program. New View Advisors was skeptical of this pessimistic view and made our case December 7, 2020: https://www.newviewadvisors.com/commentary/forward-mortgage-does-not-subsidize-reverse-mortgage/. We predicted FHA would soon show a significant HECM surplus, and that has already come to pass. FHA should now be under less pressure to take measures to reduce HECM risk, program changes that could have taken the form of higher Mortgage Insurance Premiums (MIP) or lower lending limits.

A record $10.6 billion in HMBS was issued in 2020, easily beating 2019’s total of $8.3 billion and 2018’s $9.6 billion. HMBS issuance in the first quarter of 2021 totaled about $2.7 billion, but issuers may find it difficult to maintain this pace in the face of rising interest rates.

March production of original new loan pools was $671 million, compared to February’s $693 million, January’s $552 million, December’s record $878 million, and November’s $765 million. Approximately $455 million in original new loan pools were issued in March 2020.

March issuance divided into 43 first-participation or original pools, and 48 tail pools. Original pools are those HMBS pools backed by first participations in previously uncertificated HECM loans. Tail HMBS issuances are HMBS pools consisting of subsequent participations. Tails are not from new loans, but they do represent new amounts lent. Tail HMBS issuance is essential for HMBS issuers to finance their monthly advances, such as borrower draws, FHA mortgage insurance premiums, etc. Last month’s tail pool issuances totaled $187 million, below the typical $200-$250 million range.

New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.

HECM Endorsement Analytics – February 2021

Wednesday, March 10th, 2021

2021 February HECM Endorsements came in at 4,066 units. Losing just one business day from January, February endorsements fell 10.4% over last month’s 4,539 units. Despite this drop, the top two lenders expanded their leads: American Advisors Group had 1,374 endorsements versus 1,287 in January, and Finance of America Reverse had 465 endorsements versus 433 in January. The next five lenders all saw decreases in unit count. Reverse Mortgage Funding endorsed 376 loans, 38% fewer than January, though it’s worth pointing out January was an endorsement count high water mark for RMF. Our summary of HUD’s report can be found here: NV Endorsement 2021_02.

HUD’s January Endorsement Snapshot Report is also now available on its website. HECM to HECM refis hit a record 1,651 endorsement in January. With long term interest rates at their highest levels since early 2020, it remains to be seen if rising rates will dampen HECM refinancing, and possibly HECM lending in general.

New View Advisors continues to offer its Who Buys What From Whom (WBWFW) report as part of our endorsement report subscription. The report compiles publicly available Ginnie Mae data to show which HMBS issuers buy HECMs from which lenders.

The WBWFW report includes:

♦Top Originators – a ranking by original HECM UPB of all lenders over the last twelve months
♦WBWFW – an alphabetical cross-reference between every lender and the HMBS issuer that securitizes its loans
♦Top 100 Trends – a breakdown of loan sales by month, by Top-100 lender, by HMBS issuer.

Edited samples from this month’s WBWFW report are at the end of our endorsement writeup. These reports together provide accurate insight for sales and marketing teams to learn just who’s buying what from whom. The dataset is more complete and timely than what endorsement analysis alone can show.