October Top 100 HECM Lenders Report

by Shannon Hicks
| One Comment
| November 1, 2023

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Editor in Chief: HECMWorld.com

As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.

Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.

Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.

1 Comment

James E. Veale, MBT
November 2, 2023 at 5:19 pm
Making a prediction of the volume of HECM endorsements for this fiscal year may seem foolhardy this early in the year but I poled a few industry old times and their conclusion is that fiscal 2024 will result in the worst fiscal year for HECM endorsements since fiscal year 2003. Few believe that HECM endorsements will exceed 29,000 this next fiscal year.

There has not been an October with this few endorsements since October 2002. It seems as if we are still marketing to existing HECM borrowers instead of first time borrowers. Total HECM Refis (i.e., HECM to HECM) had never been larger than 8,968 (endorsed in fiscal 2009) for any fiscal year until fiscal 2021 when thattotal reached 20,584 reaching their apex in fiscal 2022 with 28,749.

It is important to clarify that last fiscal year which ended on 9/30/2023 had the worst percentage drop (48.8%) in HECM endorsements ever. Before that that (dis)honor belonged to fiscal year 2019 with a drop of just 35.3%. With the combination of higher 10 year CMT interest rates and lower PLFs, fiscal year 2024 may have lower HECM endorsements than any fiscal year since fiscal year 2003 (and, yes, I wrote that twice for emphasis).

As usual, nothing, absolutely nothing was presented at the NRMLA annual convention on this topic. It deserves at least one session. This is a lost opportunity to let HUD know that their current MMIF policy means few large financial institutions will be interested in returning to the industry very soon with Mutual of Omaha being the main exception.
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