Realtor.com: Reverse Mortgage Resurgence Is Possible
May 11, 2020
The reverse mortgage industry has been able to survive and in some instances thrive during the COVID-19 pandemic. A recent report from Realtor.com suggests that another resurgence in reverse mortgage interest could be on the way, especially with market volatility continuing to effect retirement accounts for those close to retirement.
"NRMLA data shows an uptick in consumers who've taken the initial step and completed the financial counseling needed to proceed with a reverse mortgage," according to the report.
Steve Irwin, president of the National Reverse Mortgage Lenders Association (NRMLA) says counseling sessions in the month of March were up 25% compared with the year before.
Irwin believes that as more folks decide to age in place, this number will increase. The report states that since the pandemic hit, nursing homes and assisted-care facilities have become less attractive options for seniors, leading more of them to stay put in their own homes.
"It’s a needs-based transaction. They need to augment their financial stability," Irwin explains, according to the report. "They need to augment whatever retirement funding they have in place, or they need to relieve themselves of the burden of monthly principal and interest payments of a regular mortgage. I think that we will see more and more the use of the reverse mortgage as part of a more comprehensive financial plan in retirement."
Click here to read more about Realtor.com's reverse mortgage predictions.
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