Archive for the ‘HECM Program’ Category

HECM Endorsement Analytics – December 2022

Tuesday, January 10th, 2023

December HECM endorsement volume fell again, to 2,786 units, nearly half the unit count from a year ago, and the lowest tally since late 2019. Geographically, the monthly decline was greatest in the Santa Ana Homeownership Center at -21.4%; the decline in the Atlanta Homeownership Center was down just 0.6%. Our report can be found here: NV Endorsement 2022_12.

HUD’s November Endorsement Snapshot Report was just released on its website. HECM refis fell to 17.2% of all endorsements. Despite the dramatic decline since the start of 2022, refinance volume is still higher than the all-time lows recorded during 2018 and 2019 when H2H refis accounted for just 5% of total 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 of our WBWFW report are at the end of the 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 – November 2022

Friday, December 2nd, 2022

The downward trend continues in HECM endorsement count, which fell 7% to 3,272 units in November. Reverse Mortgage Funding (RMF) filed for bankruptcy Wednesday, the impact of which will start to reveal itself in next month’s tallies. Our report can be found here: NV Endorsement 2022_11.

HUD’s October Endorsement Snapshot Report was just released on its website. HECM refinance activity dropped to 20% of total endorsements. RMF had been one of the most active in sponsoring loans originated by another party. It remains to be seen who will take over after their departure from the industry.

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 WBWFW report samples 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 – September 2022

Tuesday, October 11th, 2022

September’s HECM endorsement volume tanked, to just 3,235 units, approximately half of the high observed in March 2022. Our report can be found here: NV Endorsement 2022_09. Compared to August, top originators American Advisors Group, Finance of America Reverse, and Longbridge Financial saw endorsements drop by 50%, 45%, and 72%, respectively. Mutual of Omaha stood out, as their volume dropped only 7% for the month. By Homeownership Centers, Santa Ana’s endorsement volume dropped 51%, while other centers experienced reductions ranging from 35% to 41%.

HUD’s August Endorsement Snapshot Report was just released on its website. As expected, the share of HECM refis dropped again, down to 32% of all endorsements. Expect this trend to continue.

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 – August 2022

Friday, September 2nd, 2022

August’s HECM endorsement count bounced back to 5,727 units, up 16% from last month’s 4,928 count. Longbridge Financial endorsed 931 loans, reaching its all-time high and almost tripling volume from one year ago. Market leader American Advisors Group (AAG) had 1,222 endorsements, 19% lower than the approximate 1,500 units it endorsed 12 months ago. AAG, which has had a consistent market share of 30%+ since 2019, in August accounted for only 21% of total endorsement volume. Our full report can be found here: NV Endorsement 2022_08.

HUD’s July Endorsement Snapshot Report was just released on its website. HECM to HECM refis were 38% of all endorsements, a level not seen since Q4 of 2020. The long term average H2H refi share is 20%, so expect to see more refi burnout as the industry (hopefully) returns to its historical mean.

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 2022

Monday, August 1st, 2022

July saw 4,928 HECMs endorsements, the first time endorsements dropped below 5,000 units since October 2021. Longbridge Financial and Traditional Mortgage Group both had endorsement counts increase 30% over June, but the other lenders all experienced meaningful unit count drops.  Our complete report can be found here:  NV Endorsement 2022_07.

The Santa Ana Homeownership Center saw a 23.8% drop in endorsements, while the other offices experienced drops near 10%. Without exception, all major western field offices, including Los Angeles, Phoenix, Las Vegas, Santa Ana, San Francisco, and San Diego, saw significantly fewer endorsements than June.

HUD’s June Endorsement Snapshot Report was just released on its website. As expected, HECM refi volume declined again, now accounting for less than 42% of all endorsements. Expect this trend to continue, especially with now slowing HPA.

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.

New View Advisors and Recursion Reverse Mortgage Prepayment Indices – June 2022

Thursday, July 14th, 2022

The New View Advisors and Recursion June 2022 expanded HECM reverse mortgage prepayment indices can be found here: New View Advisors Recursion Cohort Speeds 06_2022. 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.

HECM Endorsement Analytics – June 2022

Tuesday, July 5th, 2022

5,937 HECMs were endorsed in June, off 8.8% from the March high but up 2.7% from May. The next few months will certainly reveal the impact of rising rates and HPA burnout. Our complete report can be found here: NV Endorsement 2022_06.

HUD’s May Endorsement Snapshot Report was just released on its website. As previously noted, H2H Refis and Traditional HECMs have contributed equally to endorsement volume since late 2020. With rates rising and HPA slowing, HECM refinance volume will slow. Only the never-ending MCA lending limit increases every December can keep refi volume from falling of a cliff.

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 2022

Monday, June 6th, 2022

5,783 HECMs were endorsed in May, continuing a slow downward trend since March’s record-setting 6,510 endorsements. The May endorsement count is off 11.2% from the March high, and down 7.7% from April. The next few months will likely reveal the impact of rising rates and HPA burnout. Our complete report can be found here: NV Endorsement 2022_05.

HUD’s April Endorsement Snapshot Report was just released on its website. As previously noted, H2H Refis and Traditional HECMs have contributed equally to endorsement volume since late 2020. With rates rising and HPA slowing, HECM refinance volume should slow, though another bump to the MCA lending limits in December may well keep the refi party going into 2023. More positive media coverage, such as the recent WSJ article, could also spur a turnaround in consumer sentiment, leading to meaningful organic growth from first-time borrowers.

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 – April 2022

Tuesday, May 3rd, 2022

6,265 HECMs were endorsed in April, showing just a 3.8% drop from March’s record setting month. Geographically, only Denver saw a volume increase, from 1,295 to 1,536 units, while Atlanta, Philadelphia, and Santa Ana all had small decreases. Our complete report can be found here: NV Endorsement 2022_04.

HUD’s March Endorsement Snapshot Report was just released on its website. As expected, HECM loan rates are rising rapidly. Both HECM Refinances and Traditional HECMs contributed to the large increase in endorsement count from February to March. HECM Refis continue to account for roughly half of total 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:

1.  Top Originators – a ranking by original HECM UPB of all lenders over the last twelve months
2.  WBWFW – an alphabetical cross-reference between every lender and the HMBS issuer that securitizes its loans
3.  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 – February 2022

Thursday, March 10th, 2022

The New View Advisors and Recursion February 2022 expanded HECM reverse mortgage prepayment indices can be found here: New View Advisors Recursion Cohort Speeds 02_2022. 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.