Mortgage

Increased HECMs in Rockies spurred 2021 volume growth

Increased HECMs in Rockies spurred 2021 volume growth
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Home Equity Transfer Mortgage HECM on Desk.

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Home Mortgage Transfer Approvals ended the year strong with December numbers posting their highest monthly volume since early 2018 and total numbers for the year jumping from 2020, according to data from Reverse Market Insight.

In December, new approvals increased 5.4% to 5,218 compared to 4,953 the previous month. Last month’s incoming volume was the largest since January 2018 when an imminent rule change led to a spike in new endorsements, according to an RMI report. On an annual basis, HECM approvals jumped 18.7% from 2020.

The Great Plains saw the largest percentage rise per month, up 85% from 46 loans to 85 loans, while the Midwest increased the number of endorsements from 222 to 257 between November and December, an increase of 15.7%. Rocky Mountain market volume increased 12.7% from 694 to 782 month on month, capping a strong year of reverse mortgage activity in that part of the country, according to RMI.

“This region is one of the best stories of 2021, rising from a lethal temperature with Northwest/Alaska in fourth place to Challenge Southeast/Caribbean at number two,” the report said.

The rise of Denver and Salt Lake City has led to the growth of HECMs in the Rocky Mountain area over the past 12 months, with Mile High City ranking second in the country last year behind Los Angeles among metropolitan areas with 3,777 approvals, compared to 3,846 for the state’s largest market. California. Also, Salt Lake City ranked second among the cities with the most HECM growth, jumping 57.2% to 2,445 from 1,555 in 2020, behind Memphis up 58.9% with a smaller size of 89 for 2021, up from 56 in the year Previous.

Some mortgage companies in 2021 increased their focus on reverse mortgages, such as Diluted earnings through other channels. While FHA-backed HECM loans exclusively serve homeowners 62 or older, the reverse mortgage market has also seen the emergence of Proprietary and Inverse Hybrid Products Targeted at young people under 55 years of age. Several lenders, including Cherry Creek Mortgage and Mid America Mortgage, have offered Strategic Recruitment Steps As well as to increase mortgage assets.

In aggregate numbers, the Pacific/Hawaii region, which also includes Arizona and Nevada, continued to outpace the rest of the country in HECM annual volume, with 19,262 approvals in 2021, up 28.7% from 14,967 in 2020. The Southeast/Caribbean saw 11.3% growth On an annual basis, it rises to 8,325 from 7,478, while the Rocky Mountain area has increased to 6,586 from 5,158, an increase of 27.7%. Northwest/Alaska’s markets saw an annual rise to 5,847 from 4,368, placing it fourth, but its 33.9% annual growth led the country.

The Southwest, which stretches from New Mexico to Louisiana, increased 6% to 3,988 from 3,763 year over year, while Midwest numbers rose 2.7% to 2,729 from 2,668. Mid-Atlantic endorsements rose to 2,548 from 2,348 in 2020 , an increase of 8.5%.

New York/NJ and New England were the only two regions in the country that experienced a decline in annual endorsements, placing them in eighth and ninth place overall. New York/New Jersey came in with 1,896, down 4.7% from the 2020 volume of 1,990, and New England saw its volume fall 9.7% to 1,134 from 1,256 over the course of the year. The list is completed by the Great Plains, with new endorsements up 6% annually to 705 from 665.

American Advisors Group led all lenders in the number of HECM approvals last year with 17,096, up 18% from 14,434 in 2020. In second place was reverse mortgage financing with 5,355, a 30% increase over the previous year4, 108 are the three largest lenders with 4,636 approvals, up from 4,109 the previous year.

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