Home Equity Conversion Mortgage, or HECM, endorsements fell to 1,790 in September, their lowest monthly total since April 2020. The decline marks a further contraction in reverse-mortgage originations, according to HousingWire's report on the September data.
The endorsement figure provides a measure of newly approved HECM loans and places September activity well below levels seen in more active periods for the product. HECMs allow eligible homeowners to access part of their home equity without making monthly mortgage payments.
Issuance of HECM-backed securities, known as HMBS, totaled $446 million during the month. That represented a 17% decline from the prior month, extending the softer tone in securities issuance tied to reverse-mortgage lending.
For investors and lenders, the parallel reductions in endorsements and HMBS issuance indicate a smaller pipeline of new reverse-mortgage loans entering the securitization market. The September figures underscore the sector's sensitivity to changes in borrower demand and lending conditions.
