WASHINGTON, Oct. 16, 2020 /PRNewswire/ -- Homeowners 62 and older saw their housing wealth grow by 1.8 percent or $134 billion in the second quarter to a record $7.70 trillion from Q1 2020, the National Reverse Mortgage Lenders Association reported today in its quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index.
The RMMI rose in Q2 2020 to 276.64, another all-time high since the index was first published in 2000. The increase in senior homeowner's wealth was mainly driven by an estimated 1.6 percent or $150 billion increase in senior home values, offset by a 0.9 percent or $15.5 billion increase in senior-held mortgage debt.
"The most recent Risk Retirement Index published by the Center for Retirement Research at Boston College finds that 55 percent of working age households in America are now at risk of being unable to maintain their pre-retirement standard of living, due largely to the COVID-19 pandemic," says NRMLA President Steve Irwin. "The responsible use of home equity may be an option to help mitigate these potential risks and help seniors stay financially secure."
About Reverse Mortgages
Reverse mortgages are available to homeowners age 62 and older with significant home equity. They are a versatile financial tool that seniors can use to borrow against the equity in their home without having to make monthly principal or interest payments as with a traditional "forward" mortgage or a home equity loan. Under a reverse mortgage, funds are advanced to the borrower and interest accrues, but the outstanding balance is not due until the last borrower leaves the home, sells or passes away.
To date, more than 1.19 million households have utilized an FHA-insured reverse mortgage to help meet their financial needs. For more information, please visit www.ReverseMortgage.org
About the National Reverse Mortgage Lenders Association
The National Reverse Mortgage Lenders Association (NRMLA) is the national voice for the industry and represents the lenders, loan servicers, and housing counseling agencies responsible for more than 90 percent of reverse mortgage transactions in the United States. All NRMLA member companies commit themselves to a Code of Ethics & Professional Responsibility. Learn more at www.nrmlaonline.org.
About RiskSpan, Inc.
RiskSpan offers end-to-end solutions for data management, risk management analytics, and visualization on a highly secure, fast, and fully scalable platform that has earned the trust of the industry's largest firms. Combining the strength of subject matter experts, quantitative analysts, and technologists, the RiskSpan platform integrates a range of data-sets–including both structured and unstructured–and off-the-shelf analytical tools to provide you with powerful insights and a competitive advantage. Learn more at www.riskspan.com.
Darryl Hicks, 202-939-1784, email@example.com
National Reverse Mortgage Lenders Association
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SOURCE National Reverse Mortgage Lenders Association