HECM Endorsement Analytics – November 2020

HUD’s November 2020 HECM Endorsement Summary Report shows an ever-slowing endorsement trend, with 3,561 units tallied. Our analysis of the Summary Report can be found here: NV Endorsement 2020_11. Endorsement volume continues to trend lower as 2020 year-end approaches. Compared to April 2020, with a peak of 5,038 endorsements, the industry is now seeing endorsement volume approximately 30% lower, this despite near record HMBS issuance volume. The sudden, forced transition away from LIBOR would be one plausible explanation.

High Tech Lending originated 107 loans that were endorsed, doubling its usual monthly origination; Cherry Creek Mortgage and Traditional Mortgage Acceptance had zero and four loans endorsed respectively, notably less than what each typically originates.

HUD’s October Endorsement Snapshot Report is also now available on its website. Based on this report, HECM For Refinance accounts for over 34% of total endorsements, its largest market share to date. Traditional HECM accounts for 61% of total endorsements, and HECM For Purchase accounts for the remaining 5%.

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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