Tapping a dry well?
According to the latest FHA Single Family Production Report, FHA case number assignments for new HECM applications fell in November and December.
In their latest newsletter, Reverse Market Insight aptly titled their February report ‘Dry Well’.
For farmers or ranchers, the first signs of a nearly-depleted well are reduced water pressure, sputtering or inconsistent water flow, or sediment. In such situations, well-users may deepen the well, find another aquifer, or check for blockages.
For reverse mortgage pros, several strategies may be employed to find a new source of applicants and potentially get the leads flowing again.
Know your marketing niche:
Where is it that you shine the brightest? Is it networking with local financial professionals, banks, or real estate agents? Look back to where you’ve been most effective and if those efforts have been set aside, make a plan to reengage.
Where is it that you shine the brightest? Is it networking with local financial professionals, banks, or real estate agents? Look back to where you’ve been most effective and if those efforts have been set aside, make a plan to reengage.
1 Comment
Talking about a dry well , the highest HECM endorsements are expected to be for the first six months (ending in 10 day) of this fiscal year is less than 13,500. SIX months.
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That is on average less than 2,300 HECM endorsements per month. Last fiscal year the average per month was over 2,700 HECM endorsements.
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So why are originators telling us through industry rag sheets that things are noticeably better this year? Too many times the ultra optimistic HECM originators have no idea what is really going on in the rest of HECM world.
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Can the industry reach 33,000 HECM endorsements before the twelve months ending September 30, 2024? You decide but if you are an optimist with a sense of what is realistic, the HECM Case Number Assignments reported for December 2023 and January 2024 (the latest HUD has reported) will give you little comfort, especially combined with the low predictions for HECM Case Number Assignments for February and March 2024. That means HECM Case Number Assignments for April and May 2024 (based on a 4 month lag rule, going from Case Number Assignment to endorsement) would have to exceed 16,000, good luck with that feat.