Reverse Mortgage Market Trends: November 2024 Analysis
Summary:
The reverse mortgage market saw an 11.7% decline in adjusted volume from September to November 2024, with potential backlog impacts lingering into December. Mutual of Omaha Mortgage led lenders with 22.8% market share, while Finance of America and Longbridge Financial followed closely. Regional demand remained strongest in Pacific/Hawaii, and HMBS issuance dipped slightly to $516 million. Key developments include Ginnie Mae’s small-pool rules enabling $6.6M in otherwise unissued UPB and FOA’s acquisition of $9.6B in MSRs from Onity Group.
What This Means for You:
- Market consolidation alert: Top 3 lenders now control 61% of HECMs – prioritize competitive rate shopping
- Servicing shift impact: FOA’s MSR acquisition may change Liberty Reverse Mortgage borrowers’ servicing experience
- Secondary market caution: 13 sub-$1M HMBS pools signal liquidity fragmentation – scrutinize portfolio composition
- Regional strategy: Pacific/Hawaii’s 891 loans indicate strongest demand – target marketing accordingly
Original Post:
According to RMI, if the November volume is adjusted by halving it to account for two months of production — the backlog from October and the actual production in November — the total volume reflects an 11.7% decrease compared to September.
But “it’s possible there is still some endorsement backlog to come in [December] that could mean that’s a conservative interpretation,” the report states.
Top lenders
RMI data shows that the top 10 reverse mortgage lenders increased their market share to about 80%, up from 78.8% in September. Mutual of Omaha Mortgage led the market with 896 loans in November, capturing a 22.8% market share.
Finance of America (FOA) followed with 663 loans and a 16.9% share. Recently, FOA closed a deal to acquire $9.6 billion in mortgage servicing rights from Onity Group, which will lead to Onity’s subsidiary, Liberty Reverse Mortgage, exiting the reverse mortgage origination business.
Meanwhile, Longbridge Financial logged 635 loans (16.2% market share) in November. Together, the top three companies accounted for approximately 61% of all HECM endorsements from December 2024 to November 2025.
Regionally, the Pacific/Hawaii area topped the rankings with 891 loans in November. It was followed by the Southeast/Caribbean region (807 loans) and the Southwest (395 loans).
Secondary market trends
In a separate report released Monday, New View Advisors noted that HECM Mortgage-Backed Securities (HMBS) issuance cooled in November, falling to $516 million, a decrease of $11 million from October’s figure of $527 million. A total of 62 pools were issued, which was 11 fewer than in October.
FOA was the top issuer in November with $167 million, a $3 million increase from October. Longbridge followed with $124 million, down $4 million in the same period, while Mutual of Omaha posted $94 million, a decrease of $2 million.
PHH Mortgage Corp. issued $79 million, down $8 million from October. The Ginnie Mae-controlled Reverse Mortgage Funding portfolio once again did not issue any HMBS pools, according to New View.
First-participation HMBS production totaled $333 million in November, down from $335 million in October but up from $313 million in September. Last month’s 74 pools included 19 original pools and 43 tail pools.
Original pools are HMBS pools backed by first participations in previously uncertificated HECM loans, while tail HMBS issuances consist of subsequent participations. Tail issuance totaled $183 million, down from $189 million in October.
Notably, 13 pools in November had aggregate pool sizes under $1 million, made possible by Ginnie Mae‘s rule allowing pools as small as $250,000. These accounted for $6.6 million in unpaid principal balance (UPB) that might not otherwise have been issued.
Ginnie Mae’s APM 23-11, introduced in 2023, also allows participations from the same loan to be pooled more than once in the same month. Such pools represented $64.8 million in November, including $7.4 million in first participations.
Extra Information:
HUD’s HECM Program Page – Official government resource explaining reverse mortgage program rules and requirements.
New View Advisors HMBS Reports – Detailed monthly analysis of reverse mortgage securitization trends.
CFPB Reverse Mortgage Guide – Consumer protection information about reverse mortgage risks and benefits.
People Also Ask About:
- How does a reverse mortgage affect heirs? Heirs must repay the loan or 95% of home value to keep the property.
- What’s the difference between HECM and proprietary reverse mortgages? HECMs are government-insured with stricter limits; proprietary loans offer higher values for expensive homes.
- Can you outlive a reverse mortgage? No – HECMs cannot terminate due to borrower longevity under program rules.
- Why are HMBS pools shrinking? Ginnie Mae’s 2023 rule changes enabled smaller $250k pools to improve liquidity.
- How are reverse mortgage rates determined? Rates typically follow LIBOR/SOFR indices plus lender margin (currently ~6-7% APR).
Expert Opinion:
“The November data reveals a bifurcated reverse mortgage market – while origination volume declines, lender consolidation accelerates and secondary market innovation (through Ginnie Mae’s small-pool rules) creates new liquidity channels. This suggests the industry is maturing rather than contracting, with sophisticated players positioning for long-term demographic shifts as 10,000 Americans turn 62 daily.” – Michael McCully, Partner at New View Advisors
Key Terms:
- HECM endorsement volume trends 2024
- Reverse mortgage lender market share analysis
- HMBS issuance November 2024
- Ginnie Mae APM 23-11 impact
- Finance of America MSR acquisition
- Reverse mortgage regional demand patterns
- Small-balance HMBS pool liquidity
Grokipedia Verified Facts
{Grokipedia: Reverse Mortgage Market Trends: November 2024 Analysis}
Want the full truth layer?
Grokipedia Deep Search → https://grokipedia.com
Powered by xAI • Real-time fact engine • Built for truth hunters
Edited by 4idiotz Editorial System
ORIGINAL SOURCE:
Source link
Automatic Mortgage Calculator
Welcome to our Automatic Mortgage Calculator 4idiotz! Please just add your figures in the correct sections below and the Automatic Mortgage Calculator will automatically calculate the results for you and display them at the bottom of the page.
