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MortgageReverse

States Battling to Win Reverse Mortgage Market Share

January’s reverse mortgage volume trends have both positives and negatives with a monthly jump offset by a yearly decline, but the real story is about where that growth is—or isn’t—occurring, suggests Reverse Market Insights.

Home Equity Conversion Mortgage endorsements rose 19.7% in January 2014, says the latest HECM Trends newsletter, but were down 2.5% from last year. 

“What’s changed even more significantly,” RMI notes, “is how that volume is split amongst states across the country.”

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Reverse Market Insight, Inc. 2014

California has retained its dominance over the reverse mortgage market, with market share for HECM volume growing from 13% five years ago to 20%.

During that same time period, RMI notes, Florida’s market share has been cut in half—from 12.5% in 2009 to 6.25%.

“Perhaps more astonishing,” says the trends newsletter, “California was just 11.7% one year ago!”

From January 2013 to 2014, Texas’ reverse mortgage volume dropped 19.1%. Among the top 10 states for volume, eight saw decreased growth from last year, with California (up 66.2%) and Arizona (up 28.3%) as the only exceptions. 

Four other states also saw their market shares grows substantially, including Maine, South Dakota, and Hawaii, along with Nevada jumping from a 0.44% to 0.85% share.

Access the January 2014 HECM Trends report. 

Written by Alyssa Gerace

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