Senior Home Equity Hits $14 Trillion in Q2
WASHINGTON – RealEstateRama – Homeowners 62 and older saw their housing wealth increase by $600 billion in the second quarter to $14 trillion, according to the latest quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.
Growth in senior homeowner’s wealth was largely attributable to an estimated 3.97 percent (or $624.6 billion) increase in senior home values, which was offset by a 0.89 percent (or $20.9 billion) increase in senior-held mortgage debt. Increasing house prices drove the index’s upward trend, mitigated to some extent by a corresponding modest increase in mortgage debt held by seniors.
“Senior home equity levels reached $14 trillion for the first time, which is an impressive milestone,” said NRMLA President Steve Irwin. “Housing wealth represents a critical, yet underutilized resource, that can provide greater financial security for America’s aging population.”
About Reverse Mortgages
Reverse mortgages are available to homeowners who are 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 1.3 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.
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Contact:
Darryl Hicks, 202-939-1784,
National Reverse Mortgage Lenders Association