Heat Map Shows Regional Variations in HECM Activity

Posted by News Feeds

November 7, 2007

Heat Map Shows Regional Variations in HECM Activity,

We put together a “heat map” of the 50 states to highlight how widely HECM activity varies across the nation. States in blue and purple are “cooler” HECM markets while yellow, orange and red represent hot areas of the country.

The map is based on a comparison of each state’s 2007 HECM activity (through nine months) to 2006 HECM activity for the full year. While this is not an “apples-to-apples” time-frame comparison, we feel it provides a means to highlight areas where HECM growth is strongest. Markets that have equaled or exceeded the prior full year’s production in just nine months are obviously HOT. (Overall, U.S. HECM endorsements through September 2007 are just 2% lower than HECM production for all of 2006: 83,596 vs 85,639.)

A quick glance at the map below shows that the South is the place to be if you’re peddling reverse mortgages in 2007. Nearly every state below the Mason-Dixon line (except North Carolina) has seen HECM activity in just nine months of 2007 that is 25% or more greater than activity for all 0f 2007. Mississippi and Louisiana are particularly hot areas, perhaps due to the ongoing recovery from Hurricane Katrina. Even Florida, which has seen it’s housing market decline, remains a hot market for HECM reverse mortgages.

Western states (with a couple of exceptions) are not seeing anywhere near this level of growth. We’ve commented before about the sharp drop in California HECM activity. But perhaps most surprising is the somewhat tepid HECM activity in the Northwest states. This part of the country is generally considered to have the strongest housing market in the nation at this time.

We’ve also provided below the heat map further details for market areas within states for you to review and analyze as you wish.

HECM Loan Endorsements First Nine Months of 2007 vs Twelve Months 2006
State Federal Office	2006 12 Months	2007 9 Months		% CHG
AK	33	50		52%
ANCHORAGE	33	50		52%
AL	349	512		47%
BIRMINGHAM	349	512		47%
AR	223	314		41%
LITTLE ROCK	223	314		41%
AZ	3,276	3,348		2%
PHOENIX	2,905	2,872		-1%
TUCSON	371	476		28%
CA	23,955	14,808		-38%
FRESNO	2,621	1,980		-24%
LOS ANGELES	6,123	3,697		-40%
SACRAMENTO	3,765	2,470		-34%
SAN DIEGO	1,798	1,062		-41%
SAN FRANCISCO	3,525	1,762		-50%
SANTA ANA	6,123	3,837		-37%
CB	1	1	-	0%
CARIBBEAN	1	1	-	0%
CO	1,953	1,272		-35%
DENVER	1,953	1,272		-35%
CT	1,667	1,629		-2%
HARTFORD	1,667	1,629		-2%
DC	1,526	1,620		6%
WASH DC	1,526	1,620		6%
DE	198	317		60%
WILMINGTON	198	317		60%
FL	9,914	13,968		41%
CORAL GABLES	4,412	6,461		46%
JACKSONVILLE	1,240	1,757		42%
ORLANDO	1,896	2,810		48%
TAMPA	2,366	2,940		24%
GA	932	1,171		26%
ATLANTA	932	1,171		26%
HI	627	555		-11%
HONOLULU	627	555		-11%
IA	327	288		-12%
DES MOINES	240	235		-2%
SIOUX FALLS	87	53		-39%
ID	557	522		-6%
BOISE	557	522		-6%
IL	2,106	2,463		17%
CHICAGO	1,801	2,102		17%
SPRINGFIELD	305	361		18%
IN	749	711		-5%
INDIANAPOLIS	749	711		-5%
KS	596	775		30%
KANSAS CITY	424	601		42%
TOPEKA	172	174		1%
KY	213	315		48%
LOUISVILLE	213	315		48%
LA	277	448		62%
NEW ORLEANS	175	318		82%
SHREVEPORT	102	130		27%
MA	2,534	2,639		4%
BOSTON	2,534	2,639		4%
MD	1,795	2,149		20%
BALTIMORE	1,795	2,149		20%
ME	342	315		-8%
BANGOR	342	315		-8%
MI	2,191	2,281		4%
DETROIT	1,211	1,280		6%
FLINT	336	367		9%
GRAND RAPIDS	644	634		-2%
MN	1,139	968		-15%
MINN ST PAUL	1,139	968		-15%
MO	632	917		45%
ST LOUIS	632	917		45%
MS	108	233		116%
JACKSON	108	233		116%
MT	178	165		-7%
HELENA	178	165		-7%
NC	820	840		2%
GREENSBORO	820	840		2%
ND	50	34		-32%
FARGO	50	34		-32%
NE	255	200		-22%
OMAHA	255	200		-22%
NH	449	424		-6%
MANCHESTER	449	424		-6%
NJ	2,856	3,030		6%
CAMDEN	1,209	1,427		18%
NEWARK	1,647	1,603		-3%
NM	394	422		7%
ALBUQUERQUE	394	422		7%
NV	1,713	1,464		-15%
LAS VEGAS	1,342	1,122		-16%
RENO	371	342		-8%
NY	3,657	3,557		-3%
ALBANY	539	738		37%
BUFFALO	388	461		19%
NEW YORK	2,730	2,358		-14%
OH	1,250	1,391		11%
CINCINNATI	208	270		30%
CLEVELAND	811	827		2%
COLUMBUS	231	294		27%
OK	517	553		7%
OKLAHOMA CITY	216	278		29%
TULSA	301	275		-9%
OR	1,855	1,787		-4%
PORTLAND	1,855	1,787		-4%
PA	2,245	2,905		29%
PHILADELPHIA	1,821	2,367		30%
PITTSBURGH	424	538		27%
RI	372	435		17%
PROVIDENCE	372	435		17%
SC	475	610		28%
COLUMBIA	475	610		28%
TN	512	740		45%
KNOXVILLE	253	379		50%
MEMPHIS	113	180		59%
NASHVILLE	146	181		24%
TX	4,669	4,264		-9%
DALLAS	1,024	927		-9%
FT WORTH	1,061	900		-15%
HOUSTON	1,421	1,260		-11%
LUBBOCK	451	404		-10%
SAN ANTONIO	712	773		9%
UT	598	826		38%
SALT LAKE CITY	598	826		38%
VA	1,549	2,052		32%
RICHMOND	1,549	2,052		32%
VT	87	114		31%
BURLINGTON	87	114		31%
WA	2,098	2,098	-	0%
SEATTLE	1,904	1,910		0%
SPOKANE	194	188		-3%
WI	522	796		52%
MILWAUKEE	522	796		52%
WV	138	200		45%
CHARLESTON	138	200		45%
WY	160	103		-36%
CASPER	160	103		-36%
Grand Total	85,639	83,599		-2%