Darryl Hicks, 202-939-1784, firstname.lastname@example.org
National Reverse Mortgage Lenders Association
For Immediate Release:
WASHINGTON (June 26, 2020) – Homeowners 62 and older saw their housing wealth grow by 1.6 percent or $120 billion in the first quarter to a record $7.54 trillion from Q4 2019, the National Reverse Mortgage Lenders Association reported today in its quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.
The RMMI rose in Q1 2020 to 271.58, 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 1.4 percent or $132 billion increase in senior home values, offset by a 0.7 percent or $12.3 billion increase in senior-held mortgage debt.
“COVID-19 has impacted millions of families and their retirement portfolios, and a new study from the Center for Retirement Research at Boston College indicates that market shocks are a growing concern for many families whose retirement assets are in 401(k)s,” says NRMLA President Steve Irwin. “The responsible use of home equity may be an option to help mitigate certain market risks and help seniors stay financially secure during future market disruptions.”
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 1.17 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.