With major investors exiting the reverse mortgage space, originations of government-backed Home Equity Conversion Mortgages have dropped by 950 to 1,100 loans a month.
Federal Housing Administration monthly reports show HECM endorsements totaled around 4,650 in both November and October.
Back in September and August, FHA reverse mortgage endorsement totaled 5,600 and 5,800 respectively.
As previously reported, Wells Fargo, Bank of America and other banks announced earlier this year that they were dropping out of the reverse mortgage business.
Monthly “FHA Single-Family Outlook” reports also show a similar slide in originations of HECM Savers –which FHA introduced in late 2010. Lenders generally market the Saver to seniors as a less expensive alternative to the traditional HECM product that can also serve as a home equity line of credit.
FHA endorsements of HECM Savers totaled 310 in November and 347 in October. In September and August. FHA endorsed 537 and 538 Savers respectively.
Daily Briefing | Friday, December 30, 2011
Fannie MBS Issuance Rises for Fourth Month in a Row
The surge in refinancings this fall pushed Fannie Mae’s issuance of mortgage-backed securities to $63.7 billion in November, up 20% from the prior month.
Lending Tree Survey Raises Downpayment Issues
Americans who are able to buy homes are putting down payments of more than 12% on average, a survey from mortgage lead generator LendingTree LLC found this month.
Default Technology Provider Initiated 1.2 Million Short Sales
Since launching its short sale module in November 2009, the default servicing technology provider Equator has initiated approximately 1.2 million short sales through the fourth quarter.
NACM Credit Managers’ Index Hits High Not Seen Since May
Holiday retail sales gave the NACM’s Credit Managers’ Index a boost to a high not seen since May, but it remained below year-ago levels as many companies, including some in the mortgage space, are still in distress.
Stewart Information Services Appoints Chief Compliance Officer
Patrick Thesing has been named the chief compliance officer for Houston-based Stewart Information Services Corp.
First American in Title Deal
The title insurance unit of First American Financial Corp. has agreed to acquire Hexter-Fair Title Co. in Dallas.
Few Get Satisfactory STAR
Of the 11 largest servicers evaluated through the Fannie Mae Servicer Total Achievement and Rewards program, only CitiMortgage, Everbank, GMAC Mortgage (Ally Bank) and Wells Fargo made a satisfactory grade in the third quarter.
NAR Backpedals on Sales Estimates
The National Association of Realtors said that it overestimated home sales by nearly 15% in 2010, an indication that the housing market is in even worse shape than many experts previously thought.