Among originators of proprietary reverse mortgages, month-over-month volume tumbled by more than a quarter. On the government side of the business, wholesale production was down nearly a fifth.
Out of the revised 4,168 home-equity conversion mortgages that were endorsed during April by the Federal Housing Administration, 2,362 were originated through the retail channel.
Retail HECM production was slightly greater than in the previous month, when 2,358 units were endorsed by FHA.
But activity has significantly slowed down compared to April 2013, when HECM endorsements numbered 3,145.
The figures were compiled by Reverse Market Insight.
On the wholesale side, production dropped to 1,806 from 2,256 HECM endorsements in March.
In the same month last year, 2,568 wholesale-originated HECMs were endorsed by FHA.
Excluding government-insured reverse mortgages, Urban Financial Group was the biggest reverse mortgage lender with 239 proprietary reverse mortgages closed in April. But business at Urban sank compared to a month earlier, when 393 loans were endorsed.
Next was Liberty Home Equity Solutions Inc., which closed 197 proprietary reverse mortgages. Business at the Ocwen Financial Corp.-subsidiary plunged from 469 in March.
Generation Mortgage Co. was No. 3 with its 104 proprietary closings, then Cherry Creek Mortgage Co.’s 93 and Security One Lending/RMS’ 78 reverse mortgages.
Among all proprietary reverse mortgage lenders covered in the report, production was down 29 percent from March.
