CHICAGO–Reverse mortgage volume continued its downward trend in May, plummeting to one of the lowest single-month endorsement totals in recent history, according to ReverseMortgageDaily.com.
According to the company, home equity conversion mortgage (HECM) endorsements fell 14.1% in May to 3,646 loans—the lowest monthly total since August 2014, “when the industry struggled with the implementation of initial utilization restrictions, according to recent data released by Reverse Market Insight,” ReverseMortgageDaily.com reported.
“May, which now represents the lowest month for volume recorded in 2016 thus far, follows several months of declining endorsements in both March and April,” ReverseMortgageDaily.com reported. “And further declines could likely be in store as the rest of the year unfolds.”
According to the report, unanimous declines among the top-10 regions tracked by RMI dragged down May volume. The Great Plains, which reported 71 HECM endorsements during the month, saw its volume fall 37.2%, followed by the Rocky Mountain region, whose 210 loans represents a 34.5% monthly decrease.
All 10 of the regions in the country were down in May, however, several top lenders saw their volumes increase during the month, including Finance of America Reverse, which grew to 330 loans, signaling a 22.2% increase from last month when they had 270 loans endorsed, ReverseMortgageDaily.com reported.