HECM Originations on the Decline
July 27, 2018
Sales activity for home equity conversion mortgages (HECM) fell during the first five months of the year, according to new data from Reverse Mortgage Insight.
From January through May, HECM origination volume dropped by 7.2 percent on a year-over-year basis. Among the states, Texas and New York saw the greatest annualized declines during this period, falling by 13.6 percent and 12.3 percent, respectively. However, Washington was the strongest market for HECMs, posting a 22.3 percent annualized increase for the period.
Within the major metro areas, Seattle posted a 24.6 percent annualized increase in HECM activity, followed by San Diego at a 12.1 percent year-over-year rise. At the other end of the spectrum, HECM activity plummeted by 26.5 percent in Houston, while Denver saw a 16.4 percent slide.