2006

Posted by News Feeds

November 7, 2007

HECM Market Comparison 10/31/2007 vs 10/31/2006,

Much has changed over the past year in the HECM loan market: Florida has taken over from California as the reverse mortgage activity “hot spot” in the U.S.; new products like the HECM 100 and HECM 125 have emerged, and the overall volume of HECM loans has increased substantially. We thought it would be interesting to track HECM market changes in each of the locations that HUD processes home equity conversion mortgages.

The following table shows, for each location, the absolute change in HECM volume and the change in market share. Time periods used for comparison are the 12-month periods ended 10/31/07 and 10/31/06. Most of the significant changes reflect the emergence of Florida HECM activity and the corresponding declines in California HECM activity that we’ve noted before. But some other interesting points emerge as well:

Boston, New York and Philadelphia are all in the Top 10 with Philadelphia showing particularly strong growth.

The highest growth rate in the nation (254.9%) is in Jackson, MS and is likely related to rebuilding efforts following the Katrina disaster.

56 of 81 locations had HECM growth rates higher than the national average (33.5%) while growth rates in 25 markets were lower than the average.

14 Locations had growth rates over 100%.

10 locations (including all six California locations) had negative growth rates