NationalMortgageNews tells MHProNews.com that originations of government-backed Home Equity Conversion Mortgages (HECM) have fallen by 950 to 1150 loans a month. October and November both saw 4,650 reverse mortgages a month, a drop from 5,600 and 5,800 a month in August and September, respectively. Wells Fargo, Bank of America, and other lenders quit the HECM market earlier this year. Originations of FHA’s HECM Saver, introduced in late 2010, also dropped significantly in the same months.
(Photo credit: FHA)