EPISODE #842
Inheriting a House Is More Expensive Than People Think
Other Stories:
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[Reverse Market Insight] RMI’s Market Minute.
- [Insurify] ‘Everything Has Gone Up’. Retirees Feel the Squeeze of Inflation.
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Shannon Hicks
Editor in Chief: HECMWorld.com
As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.
Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.
Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.
1 Comment
July 2024 was not a great month for HECM CNAs (Case Number Assignments) unless one believes that fiscal year 2024 was a great year for HECMs (but that fiscal year will quickly be noted as the worst fiscal year for total HECM endorsements since 2003 when this fiscal year ends on September 30, 2024). This July had 25 fewer HECM CNAs than July 2023. June was far worse with June 2024 coming in with 2,941 HECM CNAs while June 2023 had 859 more HECM CNAs at 3,800.
Using the four month lag rule June and July 2024 are the main months of HECM CNAs that HECM endorsements for October and November 2024, respectively, will come from. In fact one has to go back to fiscal year 2002 (and yes that was a worse year for HECM endorsements than fiscal year 2003) to find lower HECM CNAs for June and July. This does not bode well for the HECM endorsement total for the first quarter of fiscal year 2025. While it is far too early to write off fiscal year 2025 as bad or worse than fiscal 2024, that is not the case for the first quarter of fiscal 2025 but still until we have more data, it is somewhat too early.
With August 2023 coming in with over 4,100 HECM CNAs, it is highly unlikely that August 2024 will make up for the bad HECM CNA totals for June (in particular) and July 2024. In fact to make up the ground, August 2024 would have to come in at close to 5,000 CNAs. The last time CNAs were greater than 4.983 was August 2022 with a total of 5,302 HECM CNAs. However, I agree with Jon that August 2024 SHOULD have over 3,000 HECM CNAs but will fall short of even 4,000 HECM CNAs perhaps sealing the fate for the first quarter of 2025 for HECM endorsements.
So far no data provided by HUD is encouraging when it comes to fiscal year 2025. All of the optimism for fiscal 2025 being expressed right now is not speaking to the problem at hand, the need for more HECM endorsements this fiscal year.