Thanks to a steep increase in up-front mortgage insurance premiums, federally insured reverse mortgage production surged last month to the highest level in nearly seven years.

Home-equity conversion mortgages endorsed by the Federal Housing Administration during January came to 6,313 units — the strongest month since 7,306 HECMs were endorsed in March 2011.

Monthly volume surged as prospective borrowers submitted more than 20,000 applications in September 2017 ahead of an increase in the initial FHA mortgage insurance premium on HECMs to 2.00 percent in October from just 0.50 percent.

Source: Mortgage Daily