Last month, the reverse mortgage industry closed just over 2,500 loans, a mark it was consistently hitting when noise from the government shutdown was factored out of the equation. Many agreed this 36% low was likely the industry’s new normal, but perhaps they spoke too soon.
April data from Reverse Market Insight pinpoints endorsements at 2,901 loans – a 12.7% uptick.
RMI noted that in March, the industry saw the highest number of case numbers issued since August, calling these combined factors a solid sign.
“Reverse is looking fairly positive as springtime rounds into full form around the country,” RMI wrote in its report.
Among the top 10 HECM lenders, all but two saw volume bloom in April, RMI revealed.
Liberty Home Equity Solutions was the standout last month with 53.1% growth, closing 222 loans, which RMI noted was its highest monthly total in over a year.
Longbridge Financial came in second with a 30.2% gain by closing 56 loans, a total that allowed it to climb the lender ranks and earn a spot among the top 10.
Synergy One Lending – which merged with Mutual of Omaha Bank over the summer –closed out the top three with a 20% uptick and 162 loans.
The regions that gained the most last month were the Great Plains (33.3%), followed by the Rocky Mountains (23.3%) and Northwest/Alaska (19.8%).
RMI President John Lunde said that while the data is promising, he’ll wait to see a couple month’s worth of endorsements before getting excited about a possible turnaround.
“That being said, April was significantly above the 2,500 loans per month level we’ve averaged for the past five months, which is a positive data point,” he said. “The additional confirmation of strong case numbers issued in March supports the idea of a potential upward trend in HECM volumes as well.”
For the full report, click here.