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32 WHY SENIOR HOMEOWNERS STAND TO GAIN Housing wealth for senior citizens is on the rise. According to the NRMLA/ RiskSpan Reverse Mortgage Market Index (RMMI), released by the National Reverse Mortgage Lenders Association (NRMLA), homeowners in the age-group of 62 years and older saw their housing wealth grow to $6.97 trillion in Q 3 of 2018. is marks a quarter-over-quarter increase of 1.4 percent or $97 billion. However, the growth has slowed down slightly compared to 2017, when senior wealth saw a quarter-over-quarter increase of 1.96 percent. e rising real-estate wealth has also resulted in an increase in reverse mortgages, NRMLA data indicated. e RMMI rose in Q 3 2018 to 251.57, another all-time high since the index was first published in 2000. During the same period last year, the RMMI had risen to 233.12. "At a time when we're seeing stock market volatility and the potential for a mild recession in the near future, it's the perfect time for families to gather and take stock of their retirement resources and make necessary adjustments to ensure continued financial security," said Peter Bell, President and CEO of NRMLA. "Housing wealth should be considered with other financial assets." e report indicated that the increase in senior homeowner's wealth was mainly driven by an estimated 1.3 percent or $115 billion increase in their home values. e rising wealth also meant that senior-held mortgage debt rose 1.1 percent during this period. Reverse mortgages are available to homeowners who are 62 years or older with significant home equity. 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 it, or passes away. According to NRMLA data, approximately 1.1 million households have utilized an FHA -insured reverse mortgage to help meet their financial needs. Even as housing wealth increases, a recent Federal Reserve survey revealed that 35 percent of households in the 64 to 74 years age group had a mortgage. FED CHAIR JEROME POWELL TAKES A STAND Fed Chair Jerome Powell had a one-word answer to a question on whether he would resign if President Trump asked him to. "No," Powell said when he was asked if he would step down at the president's request, during a panel discussion in Atlanta hosted by the American Economic Association. He participated in this discussion with other past Fed Chairs Janet Yellen and Ben Bernanke. In December, the Federal Reserve announced its final rate hike of 2018, raising interest rates to 2-1/4 to 2-1/2 percent. President Trump, who had named Jerome Powell as Fed Chair in February 2018, had appealed to the Committee to hold the rate hike. In August, he had told Reuters that he was not "thrilled" with the Fed raising interest rates. "You have to understand, we're fighting some trade battles and we're winning. But I need accommodation too," said President Trump, referencing ongoing negotiations with China. In public comments, Powell had remained firm that the hikes were needed and necessary. "Sound policymaking is as much about managing risks as it is about responding to the baseline forecast," he had said. According to Politico, while Powell has been repeatedly criticized by President Trump for the central bank's campaign of steady rate hikes, the Fed chairman has said there has been no direct contact between him and the president in recent months. Still, he said he would be open to meeting with Trump. "Meetings between presidents and Fed chairs do happen," he said. "Nothing has been scheduled." And the President might not have the authority to remove the Fed Chief either, according to Steven Mnuchin, Treasury Secretary. e president can remove a member of the Fed board only "for cause," which does not include policy disagreements.

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