WASHINGTON, Jan. 18, 2022 /PRNewswire/ -- Homeowners 62 and older saw their housing wealth grow by 4.0 percent or $396 billion in the third quarter to a record $10.19 trillion from Q2 2021, according to the latest quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.
The NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) rose in Q3 2021 to 356.37, another all-time high since the index was first published in 2000. The increase in older homeowners' wealth was mainly driven by an estimated 3.7 percent or $440 billion increase in home values, offset by a 2.2 percent or $44 billion increase in senior-held mortgage debt.
"One of the biggest fears that workers and retirees have is running out of money in retirement and having to subsist solely on Social Security," said Steve Irwin, President of NRMLA. "That's why housing wealth should be considered with other financial assets when developing a comprehensive retirement plan."
About Reverse Mortgages
Reverse mortgages are available to homeowners who are 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, more than 1.21 million 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.
Darryl Hicks, 202-939-1784, email@example.com
National Reverse Mortgage Lenders Association
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SOURCE National Reverse Mortgage Lenders Association