HECM Endorsement Analytics – January 2021

HECM Endorsements had a strong start in 2021; HUD’s HECM Endorsement Summary Report shows 4,539 endorsements in January, an 10.8% increase over December. In 2020, only April had a higher number of endorsements at 5,038. Our summary of the report can be found here: NV Endorsement 2021_01.

A handful of lenders contributed significantly to January’s increase in endorsements, notably Reverse Mortgage Funding and Longbridge Financial, with 603 and 280 endorsements respectively, representing increases of 39% and 47% over December.

Geographically, the west coast continues its domination. Field offices in Los Angeles, Phoenix, Seattle, Santa Ana, and San Francisco each eclipsed 200 endorsements in January. Denver is the only other field office in that category, with 289 endorsements.

HUD’s December Endorsement Snapshot Report shows another big refi month, with 38% of all HECM endorsements categorized as a refinancing. The same report shows that despite the recent uptick in long term treasury rates, HECM interest rates continued to trend lower.

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.

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