Tag: HECM Program Summary
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HECM Endorsement Analytics – July 2024
Endorsement activity up 8% in July to 2,274 units. HUD’s June Endorsement Snapshot Report was just released; no material changes in wholesale origination and sponsorship activities.
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FHA’s Underwater Problem – And Its Way Back to the Surface
FHA recently released an updated loan level data file showing all HECMs originated through January 2011. Not surprisingly, prepayment rates have declined. We have adjusted our HECM “Prepayment By Borrower Age” table accordingly. The real news is that FHA included some new data fields in the January 2011 data set that were not released previously.…
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The Trouble with HECMs: Part II
In the first part of this series, we outlined “The Trouble with HECMs,” the result of extremely high Loan-to-Value (“LTV”) ratios permitted by the HECM program, which left FHA highly exposed to losses during the current deep slump in home prices. FHA projects that it will lose $798 million on $30 billion of HECM loans…