Reverse Mortgage Volumes Down In May, Possibly Reflecting Home Valuation Challenges

Reverse mortgage endorsements for the month of May were 8,396, bringing the total number of endorsements to 50,261 units for the year, down from 11,660 in April.  While down sharply from the previous months, overall endorsement volume for the year is still trending 2.1% above last year’s levels.  Wells Fargo, Bank of America and Financial Freedom remain the top national lenders for year to date volumes.  The sharp drop in endorsements raise questions if home valuations are really starting to take their toll on reverse mortgage unit volumes.  The data released by HUD represents reverse mortgages that were closed in the last 90 days (approximately) so is this representative of the start of a trend as appraisers struggle on valuation, a decrease in demand for reverse mortgages or just a blip on the radar?