California Tops List of Most Popular States for Reverse Mortgages According to AAG

IRVINE, Calif., July 20, 2021 /PRNewswire/ -- As home values continue to appreciate across the country, Americans aged 62 and older are cashing in on their lifelong investment using Home Equity Conversion Mortgages (HECMs) or reverse mortgages, as they're more commonly known. To discover which areas of the country reverse mortgages are utilized most, American Advisors Group (AAG), the nation's leader in home equity solutions, researched over 47,000 reverse mortgages in 2020 to release its list of the Top 10 Most Popular States for Reverse Mortgages.

2020 Top Ten States in Reverse Mortgage Volume

1. California
2. Florida
3. Colorado
4. Texas
5. Arizona
6. Washington
7. Utah
8. Oregon
9. New York
10. North Carolina

California topped the list in 2020 with 11,921 total loans and has been the number-one state in HECM volume since 2016. Los Angeles County was by far the most popular county in the state for reverse mortgages in 2020 with 3,068, followed by San Diego County with 1,256 loans and Orange County with 1,145 loans. It's no surprise that California leads the list with the average home values increasing every year for the last five years. In second place, Florida has held as the number-two most popular state in volume over the same period of time and its top county in 2020 was Miami-Dade with 519 total loans.

Reverse mortgages have become increasingly popular in Colorado over the past few years as it has climbed from number five on the list in 2016, to number three in loan volume in 2020. Not only has the total volume increased in Colorado, but if we look at the total loan amounts in comparison to each state's senior population, Colorado has ranked number one since 2019.

"Seniors throughout the country are taking advantage of the strong housing market and tapping into their home equity to create financial flexibility," said AAG Chief Marketing Officer Martin Lenoir. "While California has historically been a popular market for the reverse mortgages, we're starting to see greater adoption in many more states such as Colorado and Utah. Seniors are realizing that their growing home equity is one of their greatest assets and that now is the time to utilize it."

To determine these results, AAG researched over 225,000 loans endorsed by the Department of Housing and Urban Development (HUD) over a five-year period. All loans in the findings were HECMs with backing from the Federal Housing Administration (FHA) and were funded by various lenders, not only AAG. According to the National Reverse Mortgage Lenders Association (NRMLA), seniors now own over $8 trillion in home equity across the United States.

About AAG 
AAG is dedicated to helping older Americans find new ways to fund a better retirement through the responsible use of home equity. As the nation's leader in reverse mortgage lending, AAG offers a suite of home equity solutions — including Home Equity Conversion Mortgages, traditional and proprietary mortgages, and real estate services — that are designed to give seniors a better financial outcome in retirement. AAG is a proud member of the National Reverse Mortgage Lenders Association (NRMLA). To learn more about AAG and reverse mortgage loans, please visit the company's website at www.aag.com. 

American Advisors Group, NMLS ID: 9392, 18200 Von Karman Ave., Suite 300, Irvine, CA 92612. AAG Residential Services, Inc., 18200 Von Karman Ave., Suite 950, Irvine, CA 92612. Real estate broker, California Department of Real Estate, License number 02039087. AAGRS is performing acts for which a real estate license is required.

CONTACT:
Ryan Whittington 
[email protected]  
(657) 236-5220

SOURCE American Advisors Group (AAG)