Originations of Reverse Mortgages Rise

The number of Home Equity Conversion Mortgages originated in calendar year 2008 increased by 6.4% over the previous year, according to new figures released by the Department of Housing and Urban Development. There were 115,176 of the Federal Housing Administration-insured reverse mortgage loan product originated last year, compared with 108,293 in 2007. Dollar volume figures were not available. According to an analysis from Reverse Market Insight, a consulting firm based in Aliso Viejo, Calif., Miami was the No. 1 market for reverse mortgage originations, with 9,561 HECMs originated in 2008, followed by Los Angeles at 4,126; Tampa, Fla., at 3,956; Santa Ana, Calif., at 3,695 and Baltimore at 3,595. Reverse Market Insight also determined that 2,949 lenders produced at least one HECM last year, a 76.5% increase over the previous year. NRMLA president Peter Bell said changes to the program recently put in place, such as a higher loan limit, the ability to use the loan for purchases and co-op eligibility, will lead to further growth of the product.