February HECM Activity Shows Continued Growth
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According to HUD’s recently released HECM Ativity Report, 9,349 Home Equity Conversion Mortgage (HECM) reverse mortgages were endorsed during February 2007. This represents a 6% increase over January’s 8,824 endorsements and a 60% increase over February 2006 when 5,841 HECM loans were endorsed.
For calendar year 2007 to date, HUD has endorsed 18,173 HECMs versus 11,398 endorsed in the first two months of 2006 - a 59% increase. Following is a chart showing that monthly HECM activity remains above its 12-month moving average indicating continued program growth:
For the most recent 12-month period (03/06 - 02/07), a total of 92,414 HECMs were endorsed by HUD, compared to 52,595 for the same period one year ago (+76%).
The following table compares each month’s HECM production with the same month for the prior year. It shows in percentage terms that the spectacular gowth rates in HECM originations has been consistent for several consecutive months:
| Month | 2003 | 2004 | 2005 | 2006 | 2007 |
| Jan | 17.36% | 15.67% | 150.51% | 41.11% | 58.79% |
| Feb | 2.39% | 272.69% | -19.05% | 73.94% | 60.06% |
| Mar | -16.32% | 250.38% | 7.76% | 54.92% | |
| Apr | 30.61% | 138.12% | -15.58% | 107.62% | |
| May | 37.22% | 79.05% | -4.30% | 199.96% | |
| Jun | 67.75% | 77.17% | 1.22% | 134.57% | |
| Jul | 87.02% | 84.47% | -12.51% | 103.09% | |
| Aug | 88.06% | 77.32% | 38.47% | 30.64% | |
| Sep | 35.61% | 105.09% | 20.28% | 74.53% | |
| Oct | 114.69% | 22.83% | 56.44% | 81.93% | |
| Nov | 107.33% | 20.42% | 66.05% | 50.31% | |
| Dec | 74.55% | 57.71% | 47.90% | 56.48% | |
| Grand Total | 52.63% | 85.53% | 20.76% | 76.60% |
Additional statisitcal information on HECM loan activity is available with our searchable HECM database.
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