Reverse Originations Slow
March 31st, 2008
- April 15th — Tax Day, and More
- Saver reverse mortgage shows modest gain
- Senior Equity Stands at $4.3 Trillion
- Reverse Application Originations Steady, Applications Soar
- Reverse mortgage applications grow, FHA loans retreat
Reverse mortgage originations slowed during the first two weeks of March, according to the latest figures from HUD.
The newest report shows that 4,888 Home Equity Conversion Mortgages (HECMs) were originated from March 1st through the 15th, a number which is down 14.3 percent when compared with the last half of February. In the last part of February HUD endorsed 5,703 reverse mortgages.
Is this a big deal? That’s not clear, but it’s certainly a curiosity. Why would reverse loan originations decline as the weather improves nationwide and the economic news continues to be discomforting? If anything, you would expect an increase in reverse mortgage activity.
The early March figures suggest a strong need to watch the next set of figures from HUD to see if we have a blip in the marketplace or the start of a trend. If reverse mortgage numbers continue to decline then we would next need to ask why…