Contact:
Darryl Hicks, 202-939-1784, dhicks@dworbell.com
National Reverse Mortgage Lenders Association
For Immediate Release
WASHINGTON (September 15, 2023) – Homeowners 62 and older saw their housing wealth increase by $820 billion in the second quarter of 2023 to $12.69 trillion, according to the latest quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.
The NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) rebounded to 444.16, nearing its historical peak in Q2 of 2022. Senior home values reached an all-time pinnacle at $14.998 trillion, while mortgage debt surged to $2.3 trillion. In its analysis, RiskSpan says a parallel trend can be observed in the S&P’s National Home Price Index, which reached an all-time high in June 2022, experienced a decline until January 2023, and has since made a substantial recovery.
“Inflation is still a concern, and some economists are still predicting a possible mini recession in 2024, so this is welcome news to see home equity levels are rebounding somewhat,” says NRMLA President Steve Irwin. “The strategic use of home equity can play an important role in helping to offset the impact of these economically challenging times and is something that every homeowner should consider when developing or updating their retirement plan.
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.