HECM Endorsement Analytics – February 2023

HECM endorsement volume continues its freefall, dropping to 2,185 units in February from last month’s 2,489. Compared to a year ago, there has also been significant shifting of origination league tables: RMF’s origination is essentially zero after its bankruptcy filing; AAG’s share dropped from over 30% to under 25%; and Longbridge’s 12-month production is 9.2% of all endorsements, up 56% from a year ago’s 5.9% market share. Our report can be found here: NV Endorsement 2023_02.

HUD’s January Endorsement Snapshot Report was just released on its website. HECM refis are down to 10.7% of all endorsements. Given that refi volume is materially less impactful, and traditional HECM origination is flatlining, we may be approaching a floor in monthly HECM endorsements.

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 recent WBWFW reports 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.

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