Data released by the National Reverse Mortgage Lenders Association (NRMLA) shows senior home equity increased by $30 billion in the fourth quarter of 2011. Seniors have $3.22 trillion in home equity available, according to the most recent NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) report.
‘Our nation's demographic and economic trends suggest that the reverse mortgage market will continue to grow,’ says Peter Bell, president and CEO of the NRMLA. ‘This data further validates that reverse mortgages are a fundamental tool to help fund longevity at a time when many Americans might face limited options.’
The RMMI showed continued stabilization in the fourth quarter of 2011, increasing to 153.48, up 0.9% from the third quarter. The rise was driven by increases in senior housing values (up 0.6%) and a drop in mortgage debt (down 0.3%). Senior mortgage debt levels fell for the 11th straight quarter to $1.01 trillion, leaving seniors with $3.22 trillion in equity.
‘Many seniors face the possibility of losing their homes based on a shortfall in cash each month, and the reverse mortgage can be a great financial solution,’ Bell adds. ‘Home equity is a key component to financial prosperity for American seniors.’