EPISODE #850
The HECM’s 10-Year CMT Rate Climbs After Fed Funds Rate cut
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[Reverse Market Insight] RMI’s Jon McCue returns for this month’s installment of RMI’s Market Minute.
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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
Listening carefully to the CNA (case number assignment) portion of the report and comparing June 2023 CNAs (3,800) to those for June 2024 (2,941) there is a drop of 22.4%. Doing the same for July 2023 (3,463) and July 2024 (3,438), the drop is just 0.7% and when doing the same comparison for August the drop is 11.3% (4,104 last year compared to 3,683 for this year). Each of these three months have worse CNA results than for those same months in 2023.
The total CNA drop for the three months ended August 31, 2024 when compared to the same three month period in 2023, is 11.5% or 1,305 HECM CNAs. I understand that looking at month (July 2024) to month data (August 2024) is far more fun and entertaining than looking at stats year to year but is seaonality for the most recent fiscal year the best and most reliable way to evaluate trends?
The question we should be asking ourselves is whether or not fiscal year 2025 will have fewer HECM endorsements than our worst year for HECM endorsements since fiscal year 2003, fiscal year 2024. Looking at this issue as a retired CPA, there is simply insufficient data to make that call with any certainty just one month into the current fiscal year but the question is very relevant for business planning purposes for the rest of this fiscal year.
Based on the CNA very solid standard for making HECM endorsement predictions, there is little hope that the HECM endorsements for the first quarter (ending 12/31/2024) of fiscal year 2025 will be as high as for that same quarter last fiscal year.
You will find HECM endorsement data reported by fiscal year totals on the NRMLA website at
https://www.nrmlaonline.org/annual-hecm-endorsement-chart