Home Equity Conversion Mortgage (HECM) approvals were down 5.9% to 4,007 loans in August 2020, a slight decrease from August numbers but still a high overall figure, underscoring that reverse mortgage business is underway during the COVID – 19th coronavirus pandemic. This emerges from the August HECM Lenders Report, which was prepared by Reverse Market Insight (RMI).
While a simple majority of the top 10 lenders saw their issuance decrease, four of the ten saw increases in August compared to their July issuance. Longbridge Financial, headquartered in Mahwah, New Jersey, led the growth in the top 10, posting a second consecutive record, rising 38.2% to 275 loans. In August, the company ranks fourth among startups, but eighth last year.
Open Mortgage followed with a 28.1% increase in volume to 178 loans in August, rounded off by Mutual of Omaha Mortgage’s 15.5% increase to 246 loans. HighTechLending also won three more loans in August, increasing to 98 in the month.
While the now-closed One Reverse Mortgage was still technically the seventh largest reverse mortgage lender for the past 12 months, it saw no confirmations in both July and August and only saw one confirmation in June.
In terms of regional growth, the Midwest led the way with a 13.6% increase to 242 loans in August. It was followed by New England with an increase of 10.1% to 120 loans, followed by New York / New Jersey with an increase of 4.8% and the Great Plains with an increase of 1.5%.
Read the HECM Lenders for August report at RMI.