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   James E. Veale, CPA, MBT

   June 4, 2014 at 11:34 am

   The trend in the endorsement volume of the new HECMs is something which can now be discussed with some accuracy.

   The huge influx of case number assignments in September 2013 has been a big boon to endorsements in fiscal 2014. In fact over 20,000 of the HECMs endorsed since September 30, 2013 through March 31, 2014 (the last month on which HUD has provided such broken out information) of which over 86% are Standards.

   Total endorsements for the six month period totaled 27,922 which is 13 endorsements above last year; however, out of that total the percentage of the endorsements for new HECMs is 26.9% (or 7,506 endorsements) of which over 81% are adjustable rate.

   What might surprise many is that in March 2014 FHA is still endorsing fixed rate Standards. In fact in this fiscal year over 120 of the total endorsements were for fixed rate Standards; HUD provides no explanation as to why.

   Lag time, that is the earliest point at which more than 50% of the applications with case number assignments turn into endorsements (which will turn into endorsements), is still running about four months.

   There is much more to be said but for now, it appears that HECM endorsement volume will be closer to fiscal 2012 levels than 2013, another year of decline.

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