HECM reverse mortgage endorsements decline in September

The market for federally insured reverse mortgages experienced a decline in September, according to data from Reverse Market Insight (RMI). Home Equity Conversion Mortgage (HECM) endorsements fell 6.7% to 1,790, marking the lowest monthly total since April 2020. Additionally, HECM Mortgage-Backed Securities (HMBS) issuance decreased by 17% compared to the previous month.

While application numbers remained relatively steady between May and July, many applicants reportedly dropped out of lender pipelines, leading to fewer closed loans. Despite the overall decline, Finance of America maintained a market lead with 3,838 endorsements through the first three quarters of the year. Other significant market participants include Mutual of Omaha Mortgage and Longbridge Financial, which together with Finance of America, held a combined 59.1% market share during the first nine months of the year.