38
SENIOR HOUSING
WEALTH
REACHES RECORD
7.82 TRILLION
Homeowners who were 62 and older
enjoyed a 1.6% increase in their housing
wealth during the third quarter of 2020,
according to the new data report from
the National Reverse Mortgage Lenders
Association (NRMLA)/RiskSpan Reverse
Mortgage Market Index (RMMI).
During the third quarter, the RMMI
determine that seniors' housing wealth
increased by $121 billion from the second
quarter to hit a new record of $7.82 trillion.
e RMMI rose during the third quarter to
280.99, its highest level in the 20-year history
of the index.
e NRMLA primarily attributed this
increase in senior homeowner's wealth to an
estimated $149 billion quarterly increase in
senior home values, a 1.6% uptick, which was
offset by a 1.6% or $28 billion increase in
senior-held mortgage debt.
"e reverse mortgage marketplace
has greatly expanded over the past year to
include more private-label products that offer
consumers more options and greater flexibility
compared to the FHA-insured Home Equity
Conversion Mortgage," NRMLA President
Steve Irwin said. "While the HECM
still accounts for over 90% of the market,
we expect private-label reverse mortgage
distribution channels to expand over time."
e new RMMI numbers follows a data
report from earlier this week by Reverse
Market Insight (RMI) that found Home
Equity Conversion Mortgage (HECM)
endorsements were up 15.1% year over year
in December to 4,097 loans. For the calendar
year 2020, HECM volume recorded an
annualized increase of 37.5% to 44,661 loans.
Eight of the 10 regions tracked by RMI
recorded strong growth during December,
led by New England's 59.5% upswing to 118
loans, the Rocky Mountain region's 28.9%
rise and the Northwest/Alaska region's 18.7%
increase.
Data compiled by New View Advisors
showed HECM-backed securities (HMBS)
issuances reached $1.2 billion for December
and ended 2020 at $10.6 billion in total
issuance. e record level for these issuances is
the $10.8 billion mark set in 2018.
Journal
