Senior Housing Wealth Exceeds $7 Trillion For First Time
NRMLA/RiskSpan Reverse Mortgage Market Index Hits All-Time High of 254.10
WASHINGTON, March 13, 2019 /PRNewswire/ -- Homeowners 62 and older saw their housing wealth grow by 1.4 percent or $98 billion in the fourth quarter to a record $7.05 trillion from Q3 2018, the National Reverse Mortgage Lenders Association reported today in its quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.
The RMMI rose in Q4 2018 to 254.10, 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 1.3 percent or $110 billion increase in senior home values and offset by a 0.7 percent or $11.7 billion increase of senior-held mortgage debt.
Year-over-year, the RMMI increased by 6.5 percent in 2018, compared to 8.4 percent in 2017 and 8.2 percent in 2016. The slowdown in the rate of growth in the RMMI can be attributed to lower home price appreciate rates nationwide.
"Despite slower home price appreciation, we ended 2018 on a high note. The RMMI increased for the 31st consecutive quarter, there are now 23.9 million senior homeowners – the highest number ever – and these homeowners hold a record $7.05 trillion in home equity," said Steve Irwin, Executive Vice President. "For many retirees, a reverse mortgage offers the perfect solution to extract this home equity and put it to good use, so that they can live more financially secure lives."
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, 1,115,527 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.
Contact:
Darryl Hicks, 202-939-1784, [email protected]
National Reverse Mortgage Lenders Association
SOURCE National Reverse Mortgage Lenders Association
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