How Many HECM Loans are Originated Each Year?
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According to the National Reverse Mortgage Lenders Association (NRMLA):
Lenders originated a record 43,131 HECMs during the most recent federal fiscal year ending September 30 (2005), according to the U.S. Department of Housing and Urban Development. This latest figure represents a 14% increase over last year’s production.
This is encouraging news, but also a reminder of the limited penetration of the reverse mortgage concept into the senior homeowners’ market. According to the 2000 census eight of 10 older households — about 17.2 million seniors — own their own residence; 43,131 HECM originations represents less than three-tenths of one-percent of senior households.
Here are statistics showing how the HECM program has grown since it’s inception:
Following are the number of HECMs endorsed for insurance (i.e. originated) in each federal fiscal year since the HECM program began. HUD provides data by federal fiscal year (each federal fiscal year begins October 1 and runs through the following September 30. FY 2004, for instance, began October 1, 2003, and ends September 30, 2004).
FY 2005 43,131
FY 2004 37,829
FY 2003 18,097**
FY 2002 13,049
FY 2001 7,781
FY 2000 6,640*
FY 1999 7,982
FY 1998 7,896
FY 1997 5,208
FY 1996 3,596
FY 1995 4,165
FY 1994 3,365
FY 1993 1,964
FY 1992 1,019
FY 1991 389
FY 1990 157 loans
Total 162,268
Source of statistics: HUD
The record for monthly volume was in March 2004 (4,187).
By calendar year, there were 8,127 HECMs made nationwide in calendar 2001; 14,181 in calendar 2002; 21,636 in calendar 2003; 47,266 in calendar 2004.
* HECMs couldn’t be made for part of FY 2000 (July to early October 2000) because FHA insurance authority ran out temporarily.
** HUD ran out of insurance authority and couldn’t insured additional HECMs during the last two weeks of September 2003 (the last month in FY 2003).
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