Stephen Caruso April 4, 2023 at 3:22 pm

AAG has been down several months in the 400-450 range in endorsements as well as being sold to FAR so that probably explains the sandbagging look to it but April or May will probably be a lot closer to reality

Stephen Caruso April 4, 2023 at 3:23 pm

THEY have been lagging in the 400-45 range for months so it makes sense but in 60 days look for the low numbers again

John A. Smaldone April 5, 2023 at 5:20 am


Makes sense, appreciate you bringing it out. AAG has been down for several months, something happened with in, but what?

Thanks Shannon,


Donna Ottanio April 5, 2023 at 5:46 am

Love your podcasts

Shannon Hicks April 5, 2023 at 6:36 am

Thank you, Donna!

James E. Veale, MBT April 10, 2023 at 8:29 am


As discussed in that conversation, HECM CNAs (Case Number Assignments) can never exceed HECM Es (endorsements). Looking at the conversion rate on a 12 month trailing basis and and using a 4 month lag rule of thumb (meaning it takes the average endorsed HECM approximately 4 months to go from getting its CNA to finally being endorsed) the HECM E count for for March 2023 at face made no sense. While in some months, issues at HUD could be the answer, problems at HUD seemed to make no sense for the March 2023 HECM E count. On the other hand the conversation rate I follow has hovered right around 75%.over the last 12 months.

The only way the count seemed to make sense was if 1) recent (last 12 months) lender layoffs had delayed the post closing endorsement process, 2) lenders that had closed or were in the midst of pulling out of the industry were no longer as efficient in moving closed HECMs through their post closing process to HUD for endorsement, 3) some other lender reason not yet detected, or 4) some combination of those three.

Even though the exact reason has not been fully identified, you identified for all of us a lender who seems to have been the primary source for the delay in the HECM endorsement process.

Thank you for your quick analysis and call back on the ridiculously high HECM E count for March 2023. I have always relied on a CNA approach when looking at HECM volume unlike others who rely more on 1) HECM endorsement trends or 2) trends in HMBS issuance. After your quick analysis on the March 2023 HECM E count, the outlier status of that count has been all but confirmed in the mind of a retired CPA and skeptic such as me.

Shannon Hicks April 10, 2023 at 9:44 am

Good observations, Jim. Thank you.


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