New HUD data shows growth in reverse mortgage activity: Miami is countryâ€™s largest marketMortgagePress.comNRMLA, reverse mortgages, HECM, HUD, Peter Bell, Reverse Market Insight
Despite turmoil in the broader mortgage market, new data
released by the U.S. Department of Housing and Urban Development
(HUD) shows that on a calendar year basis, the number of
federally-insured reverse mortgages closed in 2008 grew 6.4 percent
to 115,176 loans.
"As more seniors try to figure out how to cope with today's
economic conditions, the HECM program takes on increased
significance," said Peter Bell, President of NRMLA.
A more detailed analysis of HUD data conducted by Reverse Market
Insight, a consulting firm based in Aliso Viejo, Calif., indicates
that three of the top 10 markets in the country are located in
Florida. Miami was the top market in the country by a two to one
margin. FHA-insured 9,561 HECM loans in the Miami metro area,
followed by Los Angeles (4,126), Tampa (3,956), Santa Ana, Calif.
(3,695), Baltimore (3,595), Phoenix (3,582), Orlando (3,556),
Richmond, Va. (3,493), Philadelphia (3,317) and Chicago (3,184) to
round out the top 10.
Further analysis by Reverse Market Insight shows that 2,949
lenders originated at least one HECM loan in 2008, a 76.5 percent
increase over the prior year.
Bell anticipates newly enacted changes to the HECMincluding a
higher loan limit, lower fees, home purchase component, co-op
eligibility and stricter consumer protections around cross-selling
reverse mortgages with other financial services products--will lead
to even more growth in the coming months.
"The strong growth we're seeing suggests the HECM program
remains a strong and viable option for America's seniors as they
develop their financial plans for retirement," added Bell.
For more information, visit www.reversemortgage.org.