Reverse Mortgage Endorsements Slide By More Than 4 Percent In June

Navi Persaud

Jul 06, 2021

Senior couple having coffee outside their home.

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.

The report, which cited Reverse Market Insight data, also revealed that Home Equity Conversion Mortgage-backed-securities notched just over $1 billion in HMBS issuance, in the four-month period following the LIBOR era.

“Given the preponderance of H2H refi activity we’ve been seeing, it looks to me as though the industry could be testing the limits of loans available to be refinanced in some of the historically higher volume areas,” said RMI president John Lunde, according to RMD. “So, [the industry is] now looking a bit more to other parts of the country.”

“I look at recent months as being high enough to not warrant concern, but more the beginning of concern that volume could start trending downward more significantly,” added Lunde, according to RMD. “We’ve seen some ebbing in earlier indicators like case numbers issued and applications, so we’ll just have to see if that continues.”

“For new issue pools, each month in 2021 is outpacing the same month in prior years,” said Michael McCully, partner at New View Advisors, according to RMD. “June production of new issue pools was approximately $600 million in 2017, 2018, 2019, and 2020. It was $823 million in 2021. For overall issuance, Q2 2021 was a quarterly record with $3.16 billion of HMBS issued.”

Link copied

Published

Jul 06, 2021

People On The Move

Keeping Current Matters Names Ratiu Chief Economist

Held similar positions with Realtor.com and NAR.

Keeping Current Matters (KCM), a Richmond, Va.-based market insight education and content provider for the real estate industry, said Thursday it has named George Ratiu the company’s chief economist. George RatiuRatiu brings decades of experience...

Analysis and Data

Fannie Mae: Banking System Instability Could Cause Recession

ESR Group says housing activity expected to remain subdued.

The U.S. economy will not see a repeat of the 2008 financial crisis this year, but a “modest recession” is still on the horizon, according to the latest projections by Fannie Mae’s Economic and Strategic Research (ESR) Group. The ESR Group on Friday revised upward its first...