According to HousingWire's reporting on HECM broker activity, May saw relatively flat endorsement numbers compared to April, with the rankings among top producers staying pretty consistent. Atlantic Avenue Mortgage continues to lead the pack by a significant margin, though their monthly endorsements dipped from the previous month while their year-long average remained steady. Coming in second was loanDepot, with several other firms rounding out the top tier of producers in the broker and third-party originator channel.
The broader HECM market is moving slowly right now, mainly because higher interest rates and upfront mortgage insurance costs are creating headwinds for borrowers. Despite these challenges, there's still genuine demand from senior homeowners looking to tap home equity for retirement needs. Interestingly, borrowers are increasingly turning toward proprietary reverse mortgages as an alternative, which have seen significant growth over the past couple of years.
Even with these obstacles in place, some companies have found ways to grow their reverse mortgage businesses. One lender recently shared that their success comes down to having the right people and a solution-focused culture that's willing to work closely with partners. Industry professionals continue to argue that HECMs remain a solid product for retirees, offering protections that many other borrowing options simply don't provide.
What I am seeing locally is that reverse mortgages, whether the traditional HECM route or proprietary products, are becoming an increasingly important conversation with our senior clients in the Bay Area who own homes outright or have significant equity. As rates stay elevated and the cost of living here remains challenging, more retirees are exploring these options to access their home value without selling. The tools and resources being made available to brokers are helping us understand our specific markets better, which means better guidance for our clients navigating these decisions.
