(800) PRClosings.com PRCstress-free transactions AS A PROVEN INDUSTRY LEADER, OUR TRACK RECORD SPEAKS FOR ITSELF! With over 14 years of reverse-specific title and settlement experience and more than 225,000 transactions closed, we have the skills and the tools to help you succeed. Our process is streamlined and efficient, providing a stress-free experience. Kick back, relax and let PRC close your next reverse mortgage transaction. Contact us today for more information! The pandemic further highlighted the one trend that all countries have in common—aging populations—and that is where policymakers in most countries now see the advantages of equity release options, Kyle adds. “Many countries around the world are facing the same challenge of how to make provisions for their elderly populations at a time when national budgets are coming under increasing pressure, which has become all the more pronounced in the light of the COVID-19 pandemic and now market turbulence in view of the Russia/Ukraine conflict,” Kyle says. “We have a great deal to learn from each other at the international level in terms of how to foster and grow safe markets for reverse mortgages and other equity release solutions.” So far in 2022, the economic trends of higher inflation and rising interest rates seem to further emphasize the importance of the products, Kyle and Grainger say. Grainger notes that market growth has risen partially because affluent customers are financing “wants” rather than “needs.” “Interest rates are going up,” Grainger says, which will make product rates go up. That could negatively impact the perception of the value of equity release products. “But so long as consumers believe they are getting a good deal, it may not have a strong impact. So, while we might see a fall in the market in the near term, I also suspect that, especially with property prices increasing, there will continue to be growth in the market.” For other homeowners, Kyle says, the impact of inflation on the cost of living could outstrip their saving and pensions. “So, if they can safely draw down some of the equity in their homes, this can make a lot of sense,” Kyle says. He, too, points to significant property asset growth as a good sign for the future, as well as increasing acceptance of the products. “As competition, economies of scale and choice in equity release markets increases,” Kyle says, “we expect that consumers will be able to enjoy better deals, which in turn will allow equity release to become a more ‘normalized’ part of financial planning, with property wealth becoming an integral part of later-life planning.” REVERSE MORTGAGE / JULY-AUGUST 2022 23
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