HECM volume slips in August, with the ‘Big 3’ holding 62% market share

The recent data on Home Equity Conversion Mortgage (HECM) volume shows a decline in August, which could be a sign of a changing landscape in the reverse mortgage market. The 'Big 3' - typically the largest players in the industry - now hold a 62% market share, indicating a concentration of business among top lenders. This shift may impact smaller lenders and borrowers who rely on a diverse range of options.

The decline in HECM volume may be offset by the growth in Home Equity Mortgage-Backed Securities (HMBS) issuance, which rose to $537 million across 65 pools in August. This increase suggests that investors are still interested in the reverse mortgage market, albeit in different forms. As the market continues to evolve, it's essential to monitor how these changes affect lease and property stakeholders, including those involved in property management and real estate transactions.

Looking ahead, industry stakeholders should watch for further changes in HECM volume and HMBS issuance, as well as potential regulatory shifts that could impact the reverse mortgage market. Additionally, the performance of the 'Big 3' lenders and their market share will be crucial to monitor, as it may influence the overall direction of the industry and the availability of lease and property financing options for consumers.

Originally reported by housingwire.com. LeaseNews adds analysis for real estate & property readers.