Senior Housing Wealth Reaches Record $7.82 Trillion
NRMLA/RiskSpan Reverse Mortgage Market Index Hits All-Time High of 280.99
WASHINGTON, Jan. 14, 2021 /PRNewswire/ -- Homeowners 62 and older saw their housing wealth grow by 1.6 percent or $121 billion in the third quarter to a record $7.82 trillion from Q2 2020, the National Reverse Mortgage Lenders Association reported today in its quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.
The RMMI rose in Q3 2020 to 280.99, another all-time high since the index was first published in 2000. The increase in senior homeowner's wealth was mainly driven by an estimated 1.6 percent or $149 billion increase in senior home values, offset by a 1.6 percent or $28 billion increase in senior-held mortgage debt.
"The reverse mortgage marketplace has greatly expanded over the past year to include more private-label products that offer consumers more options and greater flexibility compared to the FHA-insured Home Equity Conversion Mortgage," says NRMLA President Steve Irwin. "While the HECM still accounts for over 90 percent of the market, we expect private-label reverse mortgage distribution channels to expand over time."
About Reverse Mortgages
Reverse mortgages are available to homeowners age 62 and older with significant home equity. They are a versatile financial tool that seniors can use to borrow against the equity in their home without having to make monthly principal or interest 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 1.21 million households have utilized an FHA-insured 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, 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.
About RiskSpan, Inc.
RiskSpan offers end-to-end solutions for data management, risk management analytics, and visualization on a highly secure, fast, and fully scalable platform that has earned the trust of the industry's largest firms. Combining the strength of subject matter experts, quantitative analysts, and technologists, the RiskSpan platform integrates a range of data-sets–including both structured and unstructured–and off-the-shelf analytical tools to provide you with powerful insights and a competitive advantage. Learn more at www.riskspan.com.
Contact:
Darryl Hicks, 202-939-1784, [email protected]
National Reverse Mortgage Lenders Association
SOURCE National Reverse Mortgage Lenders Association
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