EPISODE #845
Here’s where home values are rising and falling nationwide
What’s bad for first-time homebuyers is great for older homeowners who may want to tap into a portion of their home’s value. However, home values and equity are falling in these metros… [Listen for Details]Â
Other Stories:Â
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[CNBC]Â The Federal Reserve slashed the Fed Funds Rate by 50 basis points. How will this impact the HECM’s 10-Year CMT index?
- [Reverse Market Insight] Our monthly installment of RMI’s Market Minute with Jon McCue for all the latest HECM origination and endorsement trends.
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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
While month to month trends can be useful, they can at times also be misleading. Comparing year to year data can add perspective. The fact is HECM CNAs (case number assignments) for July 2024 are lower than those for July 2023. What is worse June 2024 HECM CNAs are substantially lower than June 2023. We now have the August 2024 HECM CNA total and, yes, it is substantially lower than that same total for August 2023. But topping it all off, total HECM CNAs for these three months is over 11% lower in 2024 than in 2023.
If you believe 1) the lag between case number assignment and endorsement for the average HECM is four months and 2) the CNA to endorsement conversion rate will remain around 70%, be prepared because that means that total HECM endorsements for the first quarter (ending December 31, 2024) of next fiscal year (starting October 1, 2024) will undoubtedly end up being the worst first quarter for any fiscal year since fiscal year 2002 (which had even lower total HECM endorsements than fiscal year 2003).
So does that mean we are going from what will soon be the worst fiscal year for HECM endorsements since fiscal year 2003 to even a worse year? Well, let’s not get that far ahead of HUD’s data reporting but there is nothing to indicate otherwise at least for now.
Just remember that pure speculation recently told us that 1) HECM Savers just had to be reinstated, 2) initial MIP will drop and will be on a pay as you go basis, and 3) the Fed will drop the interbank borrowing rate throughout most of 2023. Oh yeah even decades ago, pure speculation told us that Sonny Liston could NEVER lose to Cassius Clay (the great Muhammad Ali). Right?