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HECMWorld Endorsement Commentary
By James E Veale, CPA, MBT
HECMWorld Data Analyst
Early Sunday (2/2/2025), HUD released the HECM endorsement count for the month of January 2025. The following are a few observations based on the data in that report:
The HECM endorsement count for the month of January 2025 is the highest such count for any month so far this fiscal year at 2,641, It is only 0.57% higher than the HECM endorsement count for the month of December 2024 (last month) but 22.72% higher than the HECM endorsement count for the month of January 2024 (one year ago).
It is the fourth worst HECM endorsement count for any January since 9/30/2003 (with only the monthly counts for January 2004, January 2019, and January 2024 being worse) which includes January 2019 with its HECM endorsement count at 1,649 due to the closure of HUD’s national office for part of that month as a result of COVID.
The total HECM endorsements for the first four months of this fiscal year is 10,067. That is the fourth worst such count since 9/30/2003 with only the HECM endorsement counts for the first four months of fiscal years 2003, 2019 and 2024 being worse.
As to the revised outlook for this fiscal year, while being ahead of where it looked like we were heading, the direction is unclear since HUD has not provided any information on case numbers being assigned after 10/31/2024. Part of this uncertainty also comes from HUD without explanation taking off its website the October 2024 FHA Production Report in which forward mortgage and HECM data were provided for October 2024 twice last month and as of yet (8;15AM PST, 2/3/2025) has not returned that report to its website in several days.
If fiscal year 2025 continues at the rate of 2,641 endorsements per month through October 31, 2025, total HECM endorsements will be just 31,195, making it the second worst fiscal year for HECM endorsements. Yet the CNA (case number assignment) data is so limited that to say more would be reckless.
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