HECM Endorsement Analytics – September 2020

HUD’s September 2020 HECM Endorsement Summary Report totals 3,937 endorsements, a slight drop from last month’s 4,007 but still a pace not seen since FY2017. New View Advisors’ summary report can be found here: NV Endorsement 2020_09. Endorsements have been stable for the last four months, fluctuating by no more than 300 units a month.

Endorsements by region mirror the national dynamic; none of the home ownership centers or major field offices experienced any material change in volume. Among the top originators of note, Open Mortgage endorsed 236 loans, a 33% increase from August; Longbridge endorsed 167 loans, a 39% drop from August.

HUD’s August Endorsement Snapshot Report is now posted on its website. The Top-4 wholesale sponsors endorsed 1,109 loans originated by another party, a drop from last month’s 1,375 loans. Despite the drop, Longbridge’s wholesale increased 28% with 361 units compared to last month’s 281, and Open Mortgage increased its count 55% with 115 sponsorships compared to last month’s 74.

The August Snapshot Report also shows 1,120 endorsements labeled as HECM to HECM refis, 28% of total endorsements, nearly equal to the surge of refinancings from when FY2017 drew to a close three years ago. Ginnie Mae’s unexpected announcement last week ending LIBOR-indexed HMBS effective 2021 will likely alter the HECM to HECM refinance landscape, and impact HECM origination volume until a permanent replacement for LIBOR is established.

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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