Senior Housing Wealth Reaches Record High of $7.23 Trillion

Homeowners age 62 and older saw their collective housing wealth increase in Q4 2019 by 0.5% compared to the previous quarter. This constitutes an increase of approximately $39 billion to a record of $7.23 trillion, according to data provided by the National Reverse Mortgage Lenders Association (NRMLA) in conjunction with data analytics firm RiskSpan.

The increase was reported Friday in the quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI).

The RMMI rose in Q4 2019 to 260.52, which marks another consecutive all-time high since the index’s original publication in 2000. That increase was described as being primarily driven by an estimated 0.6% (or $55 billion) increase in the values of homes owned by seniors.

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This was offset, however, by a 1% (or $16.6 billion) increase of senior-held mortgage debt.

“The responsible use of home equity may be an option to help seniors stay financially secure during the current market disruptions,” said Steve Irwin, president of NRMLA in a release announcing the new data.

Senior housing wealth topped $7 trillion for the first time ever according to a previous RMMI data release in March 2019, before hitting a new threshold of $7.17 trillion the following October, and $7.19 trillion in December.

The RMMI also previously recorded a year-over-year increase of 6.5 percent in 2018, lower than the 8.4 percent increase recorded in 2017 and the 8.2 percent increase in 2016.

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  • I realize this is a bad time in our great nation for all of us, however, those of you in the reverse mortgage space should be still trying to make calls and helping seniors in need.

    This article shows us all just how much equity is out there in Homes owned by seniors 62 years of age and older. This is a time when many seniors can use a reverse mortgage the most.

    Most seniors have children and grandchildren that may be in financial difficulty. If many of these seniors knew more about a reverse mortgage, what a time for them to take one out and be there with the financial aid for there family!

    There are many other reasons seniors could use a reverse mortgage, with the stock market so volatile, what a hedge the reverse mortgage can be for them!

    There are so many more reasons for taking out a reverse mortgage today. I also realize it is almost impossible to go out into the public sector to originate directly. However, there are many lead sources and many data sources available to everyone so they can locate good qualified senior Homeowners. Plus, what about your past client base, great time to call on them, see how they are and at the same time, ask for referrals!

    A lot we can still do to keep busy and help our seniors in need!

    John A. Smaldone
    http://www.hanover-finacial.com

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