Nov/Dec 2021 RMM

Numbers A Closer Look at the Untapped Potential of Reverse Mortgages Study: Millions of Americans Could Benefit from Reverse Mortgage Products Source: The full paper can be found here: THE MARKET FOR REVERSE MORTGAGES AMONG OLDER AMERICANS, published last year by Christopher Mayer, who serves as the Paul Milstein Professor of Real Estate at Columbia Business School and CEO of Longbridge Financial, and Stephanie Moulton, a public policy professor at Ohio State’s John Glenn College of Public Affairs, outlined the state of the reverse mortgage industry. While skepticism about reverse mortgages persists, the authors wrote in the fall of 2020, “the need to access additional retirement assets, like home equity, has never been stronger.” Here is a closer look at numbers in the research. 80 percent: Adults 65 and older who own their houses. $139,000 : Median home equity held by a homeowner 62 and older. 2.5 million to 4.5 million: Senior households that could benefit from equity release products, including reverse mortgages. 688,000: Others who originated a mortgage in 2018 for a home purchase or refinancing, with many of them requiring payments beyond age of 90. $101,800: Median financial assets held by a homeowner 62 and older. 76 percent: Survey respondents 50 and older who said they would prefer to stay in their home as long as possible. 33,000/609,000: Reverse mortgages originated in 2018 compared to other equity release products. 36 REVERSE MORTGAGE / NOVEMBER-DECEMBER 2021