HECM Growth By State

Posted by News Feeds

November 7, 2007

HECM Growth By State,

Our prior use of a “heat map” showing Home Equity Conversion Mortgage Growth in U.S. States was well received by visitors so we thought we’d make it a monthly feature using data from HUD’s monthly HECM activity reports.

The map below is based on percentage changes HECM growth rates for the 12-month period ended 10/31/07 compared with the 12-month period ended 10/31/06. RED, ORANGE, and YELLOW states all had HECM growth rates exceeding the national average while BLUE and GREEN had growth below the national average. More detailed color code descriptions are included below the map:

US HECM Growth

RED: These are the “hottest” growth areas with year-over-year growth in excess of 100%. Florida, for example, saw 17,481 HECM endorsements from 11/1/06 through 10/31/07 compared to 8,577 HECMs in the prior 12-month period (ended 10/31/06) - a growth rate of 103.8%

ORANGE: These states saw HECM activity grow at rates of 50% to 99.99%

YELLOW: These states grew at rates of 33.5% to 49.99%. The average rate of growth for all states for this time period was 33.5%.

GREEN: These states had positive growth, but their growth rates were below the national average (33.5%).

BLUE: These states had negative growth rates. Most notable in this category is California where the number of HECMs endorsed dropped 18.3% from 23,632 to 19,304.