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.
Shannonās 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 Fridayās Food for Thought.
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1 Comment
Shannon,
If you exclude the endorsements of December 2018 and January 2019 as outliers since HUD could only endorse closed HECMs during part of each of those months due to the partial federal government shutdown, you have to go all the way to January 2004 to find a month with endorsements any lower. I could not find an August with endorsements this low since August 2003, 16 years ago.
The trailing 12 month total for endorsements has fallen month by month for the last 19 months. The trailing 12 month total for endorsements as of 8/31/2019 is 31,734 which is 36.6% lower than the trailing 12 month total for August 2018. The trailing 12 month total for case number assignments have been about 50,000 for the last 12 months. The trailing 12 month total for case number assignments for July 2019 (the latest data from HUD) is 27.9% lower than for July 2018.
The total endorsements for the month of August 2019 is 15% smaller than total endorsements for the month of July 2019. It is also 26.8% lower than the endorsement total for the month of August 2018.
The total at 2,341 HECM endorsements is also 6.4% lower than that RMI projected several months ago for the monthly endorsement floor (of 2,500). With 11 months completed for fiscal year 2019, the total to date is only 28,854 endorsements. At the first of this fiscal year we heard noise that endorsements for this fiscal year would be no lower than the endorsements for fiscal 2018. How many are there who will declare that we can rely on 19,500 endorsements for the month of September 2019 so that the endorsements for this fiscal year will about equal the total for last (48,359)? Is it any wonder why this industry has a higher percentage of skeptics than it did in December 2007? Like mushrooms, our endorsement grew rapidly in the aught decade and have generally dwindled since the end of fiscal 2009.