Reverse Mortgage Volume Up, Business In Miami Is Booming

image The National Reverse Mortgage Lenders Association announced today that data released by the Department of Housing and Urban Development shows that on a calendar year basis, the number of federally insured reverse mortgages closed in 2008 grew 6.4% 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, Inc 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  2 to 1 margin.  Below is the list of top 10 metro areas:

  1. Miami (9,561)
  2. Los Angeles (4,126)
  3. Tampa (3,956)
  4. Santa Ana, CA (3,695)
  5. Baltimore (3,595)
  6. Phoenix (3,582)
  7. Orlando (3,556)
  8. Richmond, VA (3,493)
  9. Philadelphia (3,317)
  10. Chicago (3,184) 

Further analysis by RMI shows that 2,949 lenders originated at least one HECM loan in 2008, a 76.5% increase over the prior year.

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Bell anticipates newly enacted changes to the HECM—including 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. “

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  • Yes Jim, I’m sure you’re right. We need to pressure our lawmakers to make sure more people can get out of paying their bills.

    I think we should have more housing programs, like Section 8, so that the stupid and lazy of our country can have a place to live. I propose we use your living room to house some of them.

    America is going down the toilet because everyone thinks they deserve to get the free stuff, or not to pay for their debts, and the few of us 10% who did something with our lives have to pay for all these animals’ mistakes as we’re the only ones who pay any real amount of taxes whatsoever.

    We all cry about the greedy bastards on Wall Street, but what about the dumbshits on Main Street that took out mortgages that exceeded their incomes and then have the gall to blame the problem on somebody else?

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