Home Equity Conversion Mortgage lenders ended 2017 on a positive note, thanks to a relatively strong fourth quarter, according to an analysis of FHA data. Total reverse mortgage originations rose 3.0 percent from the third quarter to end the year with $18.4 billion in overall HECM production. This was up 23.2 percent year-over-year. Purchase HECMs accounted for 76.2 percent of reverse mortgage originations in 2017. Adjustable-rate HECMs comprised 89.3 percent of loans made. Meanwhile, HECM mortgage-backed securities issuance totaled $2.25 billion in the fourth quarter, buoyed by $1.35 billion of HMBS issued in December, Ginnie Mae data show. The top five HMBS issuers accounted for $5.72 billion or 31.1 percent of all HMBS issued in 2017. American Advisors Group remained the dominant HECM lender in 2017, producing $2.8 billion over the 12-month period, which represented a ... [ Chart ]
Housing and Urban Development Secretary Ben Carson told Congress it would cost approximately $500 million upfront to convert FHA’s archaic information technology systems to a modern technology platform.
"If mortgage rates doubled overnight, our model indicates a decline of just 300,000 sales, a mere 5 percent decrease,” said Mark Fleming, chief economist at First American.
“Borrowers continue to move away from applying for loans fully in-person, as they look for a process combining both high-tech and high-touch,” according to Ellie Mae.
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