After a slow start, the number of HECM loans rebounded in March. According to the HECM volume reports, 11,261 HECMs were endorsed in March ’09 versus 9,663 a year earlier. This 16.5% increase comes after volume was down 17% in February ’09 compared to February ’08 (9,086 vs. 10,913). January ’09 volume was also down compared to January ’08 (9,858 vs. 9,957), though only slightly so.
Some interesting things to note:
– The top 10 lenders held a 44.6% market share, up from a 42% share a month earlier.
– Only 3 of the top 10 lenders (One Reverse, Generation Mortgage, and Urban Financial) are not banks or affiliated with banks.
The good news for the reverse mortgage industry is that the number of hecms appears to be on the rise again. However, the increased market share to the top 10 lenders means that the other reverse mortgage entities will have to work even harder to assert themselves and regain some of the market share. While 44.6% may be a small amount compared to other industries and indicates that there is still room for competition, any increase doesn’t speak as well for the smaller players.