Remember the days when reverse mortgage loans were only done by a few specialized lenders? It seemed as if we knew everyone in the market and going to a NRMLA meeting was like home-coming week where old friends come together. Well… that was then and this is now.
As I review the past 3 years a startling trend has emerged… the number of lenders who did one reverse mortgage has been increasing in dramatic fashion. In December 2006 – there were 205 lenders who originated 1 made up 32.4% of all loans done. In December 2008 that number climbed to 520 lenders who made up 42.9% of the total loans originated!
The number of lenders who originated between 1 – 5 loans has increased from 71.6% of the total market in 2006 to 78.4% of the total market in 2008.
Then I looked at the big players… those who originated 20 or more loans in a month. In 2006, they made up 9.0% of the total market… today, they have declined to just 5.5% of the total market.
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