HECM Endorsement Analytics – February 2020

HUD’s February 2020 HECM Endorsement Summary Report shows a total of 3,386 endorsements. It is lower than last month’s 3,919, but adjusted for day count a very strong number considering the previous 12 months averaged fewer than 2,900 units. Our summary can be found here: NV Endorsement 2020_02. While HMBS issuance is a more accurate barometer of current HECM originations, endorsement count does provide reasonable long-term trend vectors.

AAG had 691 endorsements, a significant drop from last month’s 1,141 endorsements. Liberty Home Equity Solutions kept its strong pace and endorsed 582 loans, 107 more than last month. Fairway endorsed 150, almost matching its record from Jan 2018. Live Well Financial has finally dropped off the top 15 originators list.

HUD’s January Endorsement Snapshot Report is now published on their website. Liberty Home Equity Solutions sponsored 501 loans originated by another lender. Finance of America Reverse, AAG, and Reverse Mortgage Funding followed with 333, 264, and 263 loans, respectively. Fairway sold 93 loans to another sponsor, followed by Ennkar with 63.

New View Advisors continues to offer its Who Buys What From Whom (WBWFW) report as part of this 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 can show.

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