WASHINGTON, July 22, 2021 — Homeowners 62 and older saw their housing wealth grow by 3.4 percent or $305 billion in the first quarter to a record $9.23 trillion from Q4 2020, according to the latest quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.
The NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) rose in Q1 2021 to 322.89, another all-time high since the index was first published in 2000. The increase in older homeowners’ wealth was mainly driven by an estimated three percent or $329 billion increase in home values, offset by a 1.2 percent or $23.9 billion increase in senior-held mortgage debt.
RiskSpan noted that the increase in the RMMI occurred mainly because it updated its data sources for estimating the size of the 62+ homeowner population and senior home values by using the 2019 American Community Survey (ACS), while the data source for estimating senior loan-to-value (LTV) levels was updated using the 2016 Survey of Consumer Finances.
“New research from Fidelity forecasts the average 65-year-old couple will spend $300,000 on healthcare in retirement, while single women will spend $157,000 and single men $143,000,” says NRMLA President Steve Irwin. “As the Baby Boomer generation grows older, and the strain on government resources tightens, the strategic use of home equity can help retirees cope with these potential challenges.”
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 1.21 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.
Darryl Hicks, 202-939-1784, email@example.com
National Reverse Mortgage Lenders Association
SOURCE National Reverse Mortgage Lenders Association