Reverse (HECM) Lending Spikes
June 30, 2022
Strong home price appreciation continued to spur originations of home-equity conversion mortgages in the first quarter of 2022, according to a new analysis by Inside FHA/VA Lending.
FHA endorsement of reverse mortgages surged 16.6% on a sequential basis to $8.38 billion in the first three months of 2022, the strongest showing since the third quarter of 2009. Compared to 1Q21, HECM originations grew a stunning 57.8%.
HECM refinances accounted for 53.4% of total reverse mortgages originated during the first quarter. It marked the fourth straight quarter of HECM refinances surpassing traditional reverse mortgage originations.
Purchase HECMs continued to account for a tiny share of the overall market in the first quarter, with volume falling 7.7% from the previous period.
