Pursue this instead of resolutions

Better than making  a resolution is to find your passion


John A. Smaldone January 3, 2020 at 12:43 pm


Good Food for thought as usual! 2020 should be a very interesting year, to hard to predict with all the turmoil in the country today as well as the confusion as to what direction Washington wants to go with the reverse mortgage industry! Time will only tell my friend!!

I want to wish you and your family a very Happy New Year and let us think positive together as to how 2020 will wind up!

Take care Shannon and have a great weekend,

John Smaldone

The Positive Realist January 4, 2020 at 1:47 am


I somewhat agree with you.

What I do not agree with is sacrificing where we are at, for some dream about how it should be. For example, Fiscal 2019 was not a year of increase for HECMs as some try to claim. The facts are we experienced a 35.3% drop in HECM endorsements. The argument seems centered on estimated HECM closings per fiscal year rather than endorsements, making fiscal 2018 worse so that fiscal 2019 could look more like a year of recovery. Yet a HECM is a reverse mortgage at closing, just not a HECM. A HECM is created as a result of its endorsement. Have closed HECMs ever been rejected for endorsement? While far from the majority of these loans, it does occur.

Anecdote has it that some of these rumors are grounded in the hope of seeing a higher dollar sales price for a lender being accepted by potential buyers. But is that true? What the motivation was is up for argument but the the premise is at its roots, very misleading.

The facts are that the endorsement count for December 2019 was the fourth worst count for any month in the last twelve. But even then one of those three months was the month that the partial federal government shutdown ended (during that time HUD could not endorse). The other two months were only 120 and 41 less than the endorsement count for December 2019. While the start of the first quarter of fiscal 2020 looked like it could exceed 10,000 endorsements, it ended up as 8,599 endorsements, over 1,400 short of the 10,000 endorsement mark.

Fiscal 2018 was a loss year for endorsements but its pattern made it the last fiscal year of downward sloping, peak to valley, secular stagnation. Fiscal 2019 was much different. Like fiscal 2010 was a record setting fiscal year for the drop in the number of HECMs that were endorsed (35,586), so fiscal 2019 was a record setting fiscal year for as to the percentage loss in (35.3%) HECM endorsements.

While I would love to end this comment by saying that we we can expect fiscal year 2020 to be the best year of recovery for HECM endorsements, the fact is fiscal 2020 could very well be the second year in another secular period of stagnation but with much lower endorsement totals.


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