WASHINGTON, March 22, 2016 /PRNewswire-USNewswire/ -- The National Reverse Mortgage Lenders Association reports today that an estimated $140.2 billion increase in the aggregate value of homes owned by seniors drove their share of home equity to $5.83 trillion and fueled the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) to an all-time high in Q4 2015 of 203.20 from 198.53 in Q3.
On a year-over-year basis, the index increased 8.1% in 2015, compared to an increase of 7.8% in 2014 and 17.5% in 2013.
"Significant gains in senior home equity are adding stability to the traditionally three-legged retirement funding stool of savings, social security, and pensions." said NRMLA President and CEO Peter Bell. "For retirees leaving the workplace with a defined benefit plan, home equity is a fourth leg of the stool, available to tap when needed. For the millions of seniors without a pension, home equity is a valuable resource and can be an integral part of their retirement funding strategy."
The Q4 senior equity value also represents a 16% increase from the pre-Recession peak, when senior equity levels hit an estimated $5.04 trillion in Q4 2006.
The RMMI in Q3 2015 was revised from 200.19 to 198.53 primarily due to the updated total housing value from Federal Reserve's Z.1 release of historical data on March 10, 2016.
The RMMI is updated quarterly and tracks back to the start of 2000. Release dates for 2016 are:
Q1 2016: 6/21/2016
Q2 2016: 9/20/2016
Q3 2016: 12/20/2016
About Reverse Mortgages
Reverse mortgages are available to homeowners age 62 and older with significant home equity. They are a safe financial tool seniors can use to borrow against the equity in their home without having to make monthly payments as with a traditional "forward" mortgage or a home equity loan. Under a reverse mortgage, funds are advanced to the borrower and interest accrues, but the outstanding balance is not due until the last borrower leaves the home, sells, or passes away.
To date, more than 970,000 senior households have utilized an FHA-insured reverse mortgage. More than 616,000 senior households are currently using a reverse mortgage to help meet their financial needs. For more information, please visit www.ReverseMortgage.org
About the National Reverse Mortgage Lenders Association
The National Reverse Mortgage Lenders Association (NRMLA) is the national voice for the industry and represents the lenders, loan servicers, credit unions, and housing counseling agencies responsible for more than 90 percent of reverse mortgage transactions in the United States. All NRMLA member companies commit themselves to a Code of Ethics & Professional Responsibility. Learn more at www.nrmlaonline.org.
Contact: Jenny Werwa
National Reverse Mortgage Lenders Association
JWerwa@dworbell.com (202) 939-1783
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/americas-seniors-holding-583-trillion-in-home-equity-16-more-than-pre-recession-peak-300239586.html
SOURCE National Reverse Mortgage Lenders Association