Ginnie Mae applauds the creation of Reverse Mortgage Market IndexMortgagePress.comReverse Mortgage Market Index
Ginnie Mae has commended the National Reverse Mortgage Lenders
Association (NRMLA) and the Hollister Group LLC for the release of
its new NRMLA/Hollister Reverse Mortgage Market Index (RMMI). The
RMMI is the first market indicator to collect critical market,
housing and demographic data and to track and project the market
for reverse mortgages.
"The NRMLA/Hollister Group Reverse Mortgage Market Index is
another major step in the evolution of a vibrant secondary market
for reverse mortgages in the U.S.," said Atare E. Agbamu, CRMS,
columnist for The Mortgage Press and founder of ThinkReverse
LLC.
The RMMI estimates that Americans age 62 or older currently hold
an estimated $4.3 trillion of home equity—an amount that
could increase past $37 trillion by the year 2030, assuming
historical home appreciation levels. In the first quarter of 2007
alone, there was a $19 billion increase in senior home equity.
"This kind of data is essential for developing an effective
secondary market for reverse mortgages," said Michael J. Frenz,
executive vice president of Ginnie Mae. "Demand for reverse
mortgages is increasing; therefore, insight into the amount of home
equity that is available to assist seniors with retirement funding
is crucial."
Ginnie Mae is preparing for the first issuances of its Home
Equity Conversion Mortgage Mortgage-Backed Security (HMBS) later
this year. The Ginnie Mae HMBS will be backed by Federal Housing
Administration-insured HECM loans. Ginnie Mae's creation of a
secondary market for HECM loans is expected to increase liquidity
and lower costs for borrowers.
For more information, visit www.ginniemae.gov or www.nrmla.org.
