# HECM Broker Endorsements Stall in May as Atlantic Avenue Holds Top Spot
Reverse mortgage endorsement activity continued its sluggish trajectory in May, with industry data showing brokers and lenders operating at a measured pace that reflects ongoing headwinds in the Home Equity Conversion Mortgage market.
Atlantic Avenue maintained its position as the leading HECM endorser despite the broader slowdown affecting the sector. The company's ability to stay atop the rankings underscores its market dominance, yet even this top performer faces pressure from declining volumes that have plagued the reverse mortgage industry throughout 2024.
The HECM market operates through a specific endorsement process overseen by the Federal Housing Administration. Brokers and lenders submit loans for FHA endorsement, a requirement before borrowers access their funds. This month's data reveals that endorsement counts dropped across the board, signaling reduced lending activity and fewer reverse mortgage originations entering the pipeline.
For borrowers, the tepid pace raises questions about loan processing timelines. Slower endorsement volumes can mean longer waits from application to funding, particularly for seniors who tap reverse mortgages to access home equity for medical expenses, debt consolidation, or living costs. Higher interest rates and economic uncertainty have already deterred many borrowers from refinancing existing reverse mortgages or opening new ones.
For lenders and brokers, the slowdown reflects a challenging operating environment. Revenue pressures mount when endorsement volumes decline. Staffing models built for higher production now look bloated. Smaller originators face the most acute pressure, with some exiting the reverse mortgage space entirely. Atlantic Avenue's persistence at the top does not insulate it from these trends, though its scale provides buffer against margin compression.
The reverse mortgage sector has experienced multiple waves of consolidation and exit over the past three years. Several major players have shuttered HECM operations or sold their books to competitors. The endorsement data tracks this contraction in real time.
Investors in reverse mortgage originators have grown cautious. Growth prospects appear limited, and profitability depends heavily on operational efficiency and loan volume. Private equity firms that entered the space years ago have largely exited or recalibrated expectations.
For secondary market participants who purchase reverse mortgage loans, reduced endorsement activity translates to fewer acquisition opportunities. Fannie Mae and Freddie Mac have scaled their reverse mortgage purchasing programs in response to lower volumes, adjusting their staffing and infrastructure accordingly.
The FHA's data on endorsements serves as an early-warning indicator for the broader reverse mortgage industry. May's numbers suggest that the market continues contracting rather than stabilizing. Summer months typically see modest seasonal pickup, but current trajectory suggests that improvement will remain elusive.
Brokers watching Atlantic Avenue's dominance recognize that market leadership alone does not guarantee profitability in a shrinking sector. Success now requires operational efficiency, technology investment, and disciplined cost management. The broker with the highest endorsement count still faces the same headwind: borrower demand remains muted.