Reverse Mortgage Guide

Newly-released figures from the National Reverse Mortgage Lenders Association (NRMLA) showed a decline in senior home values and home equity in the 3rd quarter of 2007. However, says the association, “when compared year-over-year, Americans age 62 and over still have a significant amount of wealth tied to their homes.”

“In the third quarter,” says NRMLA, “seniors held $4.255 trillion of home equity, down $25 billion from 2Q 2007, but still above the $4.212 trillion held in 3Q 2006. Furthermore, the combined value of homes owned by seniors declined by $10 billion to $5.077 trillion, compared to $4.970 trillion in 3Q 2006. The RMMI declined overall to 203.5 from 204.8.”

These figures are consistent with what has been seen nationwide; to wit, stalled and falling prices in many metro areas.

The association reports that during the most recent calendar year, the Federal Housing Administration (part of the U.S. Department of Housing and Urban Development) insured a record 132,252 reverse mortgages, compared to 85,639 the year before. HUD figures differ because they are based on a fiscal year, a period when ends each September 30th.

This entry was posted on Tuesday, February 12th, 2008 at 2:09 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.