Endorsements of Home Equity Conversion Mortgages climbed higher in June, while securitization volume shrank, painting a mixed picture of the latest HECM trends.
New HECM endorsements grew 4.9% on a monthly basis to 2,064 transactions, rising for the
When compared to the previous two years, HECM interest showed signs of contraction in early 2026, as a steady influx of
Rising interest rates may also play a role, but incoming application numbers through the first half of the year have largely remained consistent, the data intelligence platform said.
"HECM applications (as evidenced by case numbers issued) have been consistently above 3,000/month since February, so all indications point to steady (but small) volume until that changes," according to the report. The endorsement represents the final step in the origination after an application has been reviewed and finalized.
Endorsements improved in six out of the 10 federal regions tracked by RMI, with the Midwest seeing numbers jump 49.3% to 200 units, its highest monthly total this year. Also rising to a 2026 peak, activity in the New York/New Jersey market increased 28.8% to 134 loans.
The two traditional leading markets for reverse mortgage originations saw activity go in opposite directions. Borrowers drove an upward bump of 11.9% in the Southeast/Caribbean region to 449 loans. Meanwhile, numbers in the Pacific/Hawaii market declined 7.3% to 470 between May and June.
Secondary HMBS issuances slide downward
Signs that reverse mortgage borrowers
June's volume of HECM mortgage-backed securities settled at $456 million, 8.8% lower than May's $500 million. On a year-over-year basis, HMBS activity took a steeper fall, decreasing 10.6% from $510 million in June 2025, according to the regular monthly report from New View Advisors.
"June issuance ranks approximately tenth lowest in terms of monthly issuance since 2009 but is the second lowest volume in the month of June during that time," New View said in its commentary.
Meanwhile, first-participation issuances, representing initial HECM originations sold on the secondary market, slowed to $290 million last month, declining 14.7% from May's $340 million. Compared to a year ago, production dropped 17.1% from $350 million.
Fifty-seven securities pools were issued in June, including 14 consisting entirely of first participations, New View reported. Another 40 were tail pools, accounting for draws from existing HECMs. Three comprised both first participations and tails.
Twelve June issuances had an aggregate size of less than $1 million, as lenders capitalized on a 2023 rule change that lowered the minimum pool threshold to $250,000. The amount within those securitized pools equals $6.5 million in unpaid balances that otherwise might not have been issued, New View said.
How individual lenders fared
Although
Landing in the second spot
In new issuances reported by New View Advisors, Finance of America also led with $179 million in production, increasing from $171 million month over month. Longbridge Financial brought $132 million to market, representing a decrease from May's $133 million. Meanwhile, issuances from Mutual of Omaha dropped to $92 million, compared to $97 million a month earlier.
Year to date, the top three companies rank in the same order in first-participation offerings, with Finance of America issuing $581 million, followed by Longbridge at $516 million. Mutual of Omaha Mortgage has produced $369 million since January.
