Skip to main content

Reverse Mortgage Volume Drops Significantly In April

Navi Persaud
May 05, 2020
Elderly man using laptop.

The COVID-19 pandemic heavily affected reverse mortgage endorsement volume for April 2020, as volume dropped 45% to 1,601 loans during a month, according to Reverse Mortgage Daily. Additionally, industry advisors claim that based on data from the Department of Housing & Urban Development, some lenders posted zero closings in April.
 
"The decline comes at a time when many originators report borrower inquiries are up and conversations with financial planners and other referral sources are gaining momentum. The loan volume alone is not the only indicator of market health," says Reverse Market Insight co-founder and president John Lunde in his monthly endorsement report published this week. "While we’d normally be very concerned about this level of drop, we have many other reliable indicators that the reverse mortgage business is actually holding up well in the pandemic."
 
RMI noted that there has been an increase in retail applications for Feburary and in March, and there was a 50% increase in applications year-over-year. 
 
Despite the lull in in April reverse mortgage volume, on yesterday's Mortgage Leadership Outlook series, Ralph Rosynek, chief information officer and senior vice president of wholesale for Moneyhouse, noted how now is a great time to look at reverse mortgages. “We’ve seen a big increase in our pipelines because of this,” Rosynek said due to the impact on retirement savings from drops in the stock market and a lack of a “rainy day plan” by many older workers in light of the COVID-19 outbreak.
 
Click here to read more about April's reverse mortgage volume.

 
Published
May 05, 2020
More from
Reverse
HECM Endorsements Plummet More Than 14 Percent

Home equity conversion mortgage endorsements plummeted 14.3% in August 2021 to 3,679 loans.

Reverse
Sep 14, 2021
Reverse Mortgages Aren't Expanding Into Broader Mortgage Business

The reverse mortgage sector has remained strong accounting for more than 4,000 loans a month, according to Reverse Mortgage Daily, however, growing the business further has been on the back burner.

Reverse
Jul 28, 2021
FHA Adds COVID-19 Recovery Options For Forward And Reverse Borrowers

The Federal Housing Administration announced additional COVID-19 recovery options to help both forward and reverse homeowners who are facing hardships as a result of the pandemic.

FHA
Jul 26, 2021
RMF Revamps Its Borrower Qualification Process To Increase Efficiency

Reverse Mortgage Funding, LLC (RMF) is taking a new approach to the borrower qualification process for those seeking a reverse mortgage. The process was created to drive efficiency during the approval process and increase reverse mortgage market growth.

Reverse
Jul 20, 2021
Reverse Mortgage Endorsements Slide By More Than 4 Percent In June

Reverse mortgage endorsements decline by 4.4% to 4,160 loans, increasing the streak of more than 4,000 loans per month, according to Reverse Mortgage Daily.

Reverse
Jul 06, 2021
Liberty Reverse Mortgage Becomes Full Service Reverse Lender Following RMS Acquisition

Last week Ocwen Financial Services announced the acquisition of Reverse Mortgage Solutions. In a recent interview with Reverse Mortgage Daily, Mike Kent shared how the acquisition will affect the company.

Reverse
Jun 22, 2021