The Wall Street Journal posted a new article about how the demand for reverse mortgages has climbed as retirement savings have plunged during the recession. WSJ writer Jilian Mincer describes how the market is expected to grow significantly as baby boomers with inadequate savings tap their home equity to fund retirement.
"Americans have the bulk of their assets tied up in their homes, even now," says Greg McBride, senior financial analyst at Bankrate.com. "The demand for reverse mortgages is increasing by the day."
According to HUD’s most recent FHA Outlook report, HECM applications are up about 14% for FY 2009 compared to this time FY 2008.
"People who thought their retirements were set are finding out they don’t have the resource they thought they would," says Bronwyn Belling, reverse mortgage specialist at the AARP Foundation, an affiliated entity of AARP. "It’s a really valuable way to help make ends meet and to stay in their own homes."