HECM Endorsement Analytics – October 2020

HUD’s October 2020 HECM Endorsement Summary Report totals 3,737 endorsements, dropping 5% from last month’s 3,937 tally. Nonetheless, endorsement count maintained its steady pace for the 5th month in a row.  Our analysis can be found here: NV Endorsement 2020_10.

Most of the top originators experienced a drop in endorsements in sync with the overall decline in volume; the number of loans endorsed by AAG, Fairway Independent Mortgage, and Open Mortgage each dropped 10+% compared to the prior month; however, Reverse Mortgage Funding and Mutual of Omaha Mortgage saw their endorsement count each gain by more than 7%.

HUD’s September Endorsement Snapshot Report is now posted on its website. Wholesale sponsors sponsored a total of 1,763 loans originated by another party. Nearly 90% of that total were sponsored by the top six sponsors. Finance of America Reverse continued to be the leading player in this category, sponsoring 535 loans. Notably, new entrant South River Mortgage originated 106 loans originated by another party. While just entering the space midyear, its volume has been up each month and has had endorsed 231 HECMs.

New View Advisors continues to offer its Who Buys What From Whom (WBWFW) report as part of our endorsement report subscription. The report compiles publicly available Ginnie Mae data to show which HMBS issuers buy HECMs from which lenders. The WBWFW report includes:

–Top Originators – a ranking by original HECM UPB of all lenders over the last twelve months
–WBWFW – an alphabetical cross-reference between every lender and the HMBS issuer that securitizes its loans
–Top 100 Trends – a breakdown of loan sales by month, by Top-100 lender, by HMBS issuer.

Edited samples from the WBWFW report are included at the end of our writeup. These reports together provide accurate insight for sales and marketing teams to learn just who’s buying what from whom. The dataset is more complete and timely than what endorsement analysis alone can show.


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