HECM Endorsement Analytics – May 2020

HUD’s May 2020 HECM Endorsement Summary Report shows a total of 5,038 endorsements, the highest monthly endorsement tally we’ve seen in over two years, and a 215% increase from last month’s 1,601. Our summary and analysis can be found here: NV Endorsement 2020_05. Granted, a significant portion of this month’s endorsement volume is likely backlog from April due to the slowdown in loan processing caused by the pandemic. During the six months prior to April, average monthly endorsements ran slightly over 3,000.

The Endorsement Summary Report replaced Synergy One Lending with its parent company Mutual of Omaha Mortgage and our numbers present the combined endorsement count. Similarly, PHH Mortgage Corporation was added to the report as an originator. Even though HUD’s data still shows Liberty Home Equity solution as a separate originator, our report combines their numbers as one line item.

Based on 12-month endorsement totals, the same six lenders occupy the top originator spots from a year ago. One Reverse Mortgage aside, all of these originators have more endorsements today than a year ago. AAG’s endorsement total is now 32% of the market total, up from 29% in May 2019. During the same 12-month period, and still including ORM, the market share of combined endorsements from these six originators increased from 63% to 66%.

HUD’s April Endorsement Snapshot Report is now available on its website. The report shows that most sponsors were quiet in April, however FAR and Longbridge actively sponsored loans originated by another party. FAR sponsored 407 and Longbridge sponsored 103 such loans, compared to 305 and 107 on average respectively over the previous 12 months.

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 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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