The volume of reverse mortgages insured by the federal government descended last month, leaving annual activity at the lowest level in 13 years. New appraisal requirements are likely to exacerbate the slowdown.

During September, there were 2,880 home-equity conversion mortgages that were endorsed by the Federal Housing Administration — the second-slowest month on record since at least December 2008.

HECM production was 3,197 endorsements as of one month previous. During the same month last year, FHA endorsed 4,592 units through the program.

Source: Mortgage Daily