Reverse mortgage metrics fall sharply in February

"Overall industry weakness continues to remain a concern, and the short shutdown early in the month is another possible reason, but it also brings to mind a larger issue that non-HECM reverse mortgage loans are nibbling at the edges of HECM volume more directly these days than ever before, RMI explained."

"February's endorsement count is the lowest since the early days of the COVID-19 pandemic, when just 1,601 endorsements were recorded in April 2020. Comprehensive data on the impact of proprietary reverse mortgage products is not publicly available, leaving analysts to rely largely on anecdotal accounts and market observations."

"February's $431 million total marks the lowest monthly issuance in the past two years, the second lowest since 2014 and the third lowest since 2009, New View reported. Among issuers, Finance of America led the market with $140 million in February issuance, down $15 million from its $155 million total in January."

HECM reverse mortgage volume declined significantly in February, reaching its lowest endorsement count since the early COVID-19 pandemic period. Industry weakness and a brief early-month shutdown contributed to the decline, but non-HECM proprietary reverse mortgage loans are increasingly capturing market share. No region posted gains, with the Northwest/Alaska region experiencing the steepest decline at 37.4%. All top 10 lenders reported lower endorsement totals, with Finance of America showing the smallest decrease at 8.5%. HECM Mortgage-Backed Securities issuance fell to $431 million, marking the lowest monthly total in two years and the second lowest since 2014.

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