November 2024 Top 100 HECM Lenders Report

by Shannon Hicks
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| December 2, 2024

⬇︎WATCH THE VIDEO SUMMARY BELOW ⬇︎ Download this month’s report [pdf] View Annual Historical HECM Endorsements

What are the latest ranking changes in the Top-10-Lenders? Watch or download the report for November 2024 HECM endorsements from direct retail originations.

HECMWorld Endorsement Commentary

By James E Veale, CPA, MBT
HECMWorld Data Analyst

The total HECM endorsement count for last month is 2,408 which is 151 better than for November 2023 (at 2,257). While the number of HECM endorsements increased from October 2024 to November 2024 the increase was just 16 HECM endorsements for a percentage increase of just 0.67%.

The fiscal year to date HECM endorsement count for fiscal year 2025 stands at 4,800. That same count for fiscal year 2024 was 124 HECM endorsements higher at 4,924. This total of 4,800 for the first two months of this fiscal year is the worst such total for any first two months of any fiscal year since November 2002 (22 years ago).

Comparing the HECM case number assignments for August 2023 of 4,104 to that amount for August 2024 of 3,683 and using the 4 month lag rule leads one to the conclusion that the total endorsements for the month of December 2024 will be lower than that same total for December 2023 (just 2,190), assuming the HECM conversion rate from case number assignment to endorsement remains about the same as it has been for several fiscal years. Still the one thing that seems most probable is that total HECM endorsements for the first quarter (ending 12/31/2024) of fiscal year 2025 will be lower than the same total for last fiscal year of 7,114.

Before venturing into what the HECM endorsement situation will be for the second quarter of this fiscal year, it seems only right to wait until HUD provides the HECM case number assignment data for October 2024. Yet it is tempting when comparing the expected rate index now and on September 18, 2024 when Fed Chair Jerome Powell announced a reduction in the Fed rate of 0.5% (or 50 basis points) to be somewhat pessimistic but this is far too early in this fiscal year to be so.

The HECM Summary Endorsement Report was also interesting because once again FAR is the leader in HECM endorsements as to the HECM endorsement fiscal year to date total. As to the fiscal year to date total, this lead is tenuous since MOOM is only 2 HECM endorsements behind. To overtake MOOM, FAR had only 19 more HECM endorsements than MOOM last month.

Longbridge has a strong hold on third place but its HECM endorsement total for last month was 22% lower than MOOM’s and Longbridge’s total fiscal year to date HECM endorsement total is 26.3% lower than that same total for MOOM.

TMAC is in a distant fourth place with South River in a close fifth position to TMAC.

It is hoped that we will not only see the HECM case number assignment data for October 2024 but also for November 2024 before New Year’s Day. That data will provide the necessary historical data to begin making sense out of the direction the industry will be heading in as to HECM endorsements during the second quarter of this fiscal year. With 10 months to go it seems as if unless HUD acts to materially increase the current PLF structure of HECMs or the market pushes the expected rate index down by more than 70 or so basis points by June 1, 2025, the chances of having a materially better fiscal year than fiscal year 2024 as to HECM endorsements seems somewhat remote.