The National Reverse Mortgage Lenders Association (NRMLA) has just issued new figures regarding the size of the reverse mortgage marketplace. Some of these numbers are enormous and explain why so many lenders have begun to enter the reverse mortgage field:

*”Americans age 62 or older hold an estimated $4.3 trillion of home equity,” according to the NRMLA/Hollister Reverse Mortgage Market Index (RMMI). “Although the reverse mortgage industry has seen tremendous growth in the last five years, only a little more than 300,000 reverse mortgages have been originated in its short history, representing less than 1% market penetration.”

*In the first quarter 2007 alone, says NRMLA, there was a $19 billion increase in senior home equity. This increase was reflected in a 0.4% increase in the RMMI to 205.6 from 204.7 in the prior quarter. The index will reflect the current value of senior home equity on a quarterly basis. However, this was the smallest increase for all quarters since 2000.

*There may be as much as $37 trillion in home value by 2030 says NRLMA, assuming historical appreciation and taking into account the demographic shift as boomers begin to turn 62.

This entry was posted on Friday, June 29th, 2007 at 2:15 am 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.