Data released by the National Reverse Mortgage Lenders Association (NRMLA) shows senior home equity increased $46 billion in the third quarter of 2011. Seniors have $3.19 trillion in home equity available according to the most recent NRMLA/Risk Span Reverse Mortgage Market Index (RMMI) report.
“This data further demonstrates that the home must be considered as part of the funding longevity equation. Reverse mortgages are a creative tool to help seniors better use the assets they have to safely fund retirement,” said Peter Bell, president and chief executive officer of NRMLA.
The NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) showed signs of stabilizing in the third quarter of 2011, increasing by 1.5 percent to 152.0. In Q3, housing prices in 69 percent of the 395 Metropolitan Statistical Areas (MSAs) (including eight of the 10 biggest MSAs) tracked by the Federal Housing Finance Agency (FHFA) and RiskSpan saw quarter-over-quarter increases, sending aggregate senior housing values up one percent to $4.2 trillion. Senior mortgage debt levels fell for the 10th straight quarter to $1.02 trillion, leaving seniors with $3.19 trillion in equity.
“The home is, by far, the largest financial asset most families have for use in retirement,” said Bell, “Reverse mortgages have evolved from a circumstance-based product to an accepted forward looking tool used for financial planning.”