HECM Volume Rebounds in June, but Leaves Predictions in Jeopardy

After falling from 11,660 HECMs endorsed in April to 8,396 HECMS endorsed in May, HECM volume increased slightly in June to 8,633 HECMs endorsed.  As the graph indicates, HECM volume for the year still looks like it is on track to be higher than last year.  However, one wonders if the number of HECMs endorsed will be as high as was previously thought. While the trend through April might have led one to believe that the industry would see a 144,000 HECM volume year, these trends show something more like 120,000.

Once again, the volume of HECMs is concentrated in the top few lenders, decreasing dramatically on down. Wells Fargo, the top lender, has endorsed more than twice as many loans as the number 2 lender, Bank of America. Many other lenders  have only endorsed one HECM last month.

The FHA’s complete HECM volume report for the month of June can be found here.