Lenders originated $13.3 billion in traditional FHA-insured reverse mortgages during the first three quarters of fiscal year 2011, which is down 18% from the same period a year ago.
In the month of June, lenders originated 5,300 traditional home equity conversion mortgages totaling $1.25 billion, according to a new Federal Housing Administration Monthly Report to the Commissioner.
The report also shows the HECM Saver product that was introduced last fall has generated over $800 million in new loans as of June 30.
Reverse mortgage lenders originated 524 HECM Savers in the month of June and 2,250 Savers since October.
The HECM Saver has a nominal upfront premium, compared to the 2% upfront premium on traditional HECMs.
Some reverse mortgage lenders market the HECM Saver as a low-cost home equity line of credit for seniors.
