March HECM bump masks a deeper slowdown

Endorsements of Residence Fairness Conversion Mortgages surged noticeably final month from a brief February, however volumes are nonetheless exhibiting weak point in comparison with second-half 2025 ranges.  

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HECM endorsements elevated 16.3% month over month in March to 2,117 loans, in response to the newest knowledge from Reverse Market Perception. Whereas welcome information for lenders of the product, month-to-month numbers from the final two months are nonetheless on the slowest tempo since final summer season. February volume came out to 1,821 loans. 

In comparison with one 12 months earlier when endorsements totaled 2,128, March’s numbers got here nearer to par, inching down by simply 0.5% 12 months over 12 months.

Latest downward HECM traits don’t essentially level to lack of curiosity in reverse merchandise, although, RMI mentioned. 

“What we will piece collectively seems like the expansion in unit quantity has been virtually solely within the proprietary merchandise for a number of years, notably once we exclude the HECM refinance waves from 2018-2022,” RMI famous in its month-to-month endorsement report. 

In contrast to the Federal Housing Administration-backed HECMs, proprietary mortgage originations will not be required to be reported in the identical method, making precise comparisons difficult, researchers acknowledged. The growth of proprietary liens supplied in the previous couple of years along with HECMs has created a extra aggressive trade panorama, which can favor firms with a various set of choices.

This week, Finance of America, which as soon as constantly topped the HECM leaderboard, introduced growth of a non-public second-lien draw merchandise to a few extra states.

Progress by areas

The biggest progress in endorsements got here from 4 totally different government-designated areas: Rocky Mountain, Northwest, New York/New Jersey and Mid Atlantic. All noticed mortgage quantity develop by roughly one-third from February to between 133 and 178 endorsements.

Hotter-weather markets continued to high the record on a per-unit foundation, nonetheless, led by Pacific/Hawaii at 498 HECMs, adopted by the Southeast/Caribbean geographic area with 469. 

The highest 10 HECM lenders by quantity remained the identical from February to March, however a change on the high noticed Finance of America at 454 endorsements pulling forward of Mutual of Omaha Mortgage with 409. The latter firm continues to steer year-to-date exercise with 1,249 in contrast 1,216 for Finance of America. 

On the similar level in 2025, each firms recorded 1,450 HECM loans.

Rounding out the highest 5 for March have been Longbridge Monetary at 332, Goodlife Residence Loans with 107 and newly renamed Onity Mortgage with 58. 

Beforehand referred to as Liberty Reverse Mortgage, the HECM lending subsidiary of Onity introduced it could stop originations following the sale of assets to Finance of America late final 12 months. Closure of the deal continues to be pending.