HECM Endorsement Analytics – May 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.

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