Some markets are bucking the slowdown in reverse mortgage demand, with lenders bolstering their presence in those active states.
According to recent numbers from the end of May, endorsement volume fell 1.9 per cent year-over-year on a national basis – except for two markets that are booming, according to Reverse Market Insight.
California saw an 8.8 per cent growth rate, up from April’s 7.4 per cent year-over-year growth. In addition, Arizona showed a 5.7 per cent increase in annual growth, up 3.6 percentage points from April.
The figures are before an expected volume slump following implementation of Financial Assessment as part of the originations process.
Seeing growth opportunity in California is increasingly easy, according to key lenders in that market.
“I am pleased with these results and am looking forward to an even more impressive showing next year,” said Victor Ciardelli, president and CEO of Guaranteed Rate.
His company is among those benefitting from a buoyant real estate market, where middle class buyers have returned.
Guaranteed Rate is, in fact, one of the 10 largest retail mortgage lenders in the U.S., with success being derived from the hot West Coast market.
California, where home prices have continued to rise following the housing crash, refinance transaction volume is more than 24 per cent, versus the national average of 10.2 per cent.