The Lone Star State recently passed the $5 billion mark in its 13-year-old reverse mortgage industry, announced a Texas owned and operated mortgage bank.
From the time Texas’s first home equity conversion mortgage (HECM) was originated in 2000, more than 52,000 seniors living in the state have accessed more than $5 billion in home equity through a reverse mortgage.
“This is a great milestone for the reverse mortgage industry in Texas,” said Scott Norman, VP of Sente Mortgage’s Reverse Mortgage Division and a member of the National Reverse Mortgage Lenders Association Board of Directors. “Over the next decade, as more Texans are forced to deal with health care costs, stock market fluctuations and tax increases, reverse mortgages will continue to take on a greater significance in their financial planning.”
In the last two years alone, Texan homeowners accessed $1.24 billion in reverse mortgage funds, according to Sente Mortgage.
Texas has the second-largest reverse mortgage market in the United States, commanding 8% of the national market share. It is positioned to become the largest reverse mortgage lending state in the country by 2020. Nearly a quarter (23%) of the state’s households are owned by individuals aged 65 or older, and the state is home to 5.2 million baby boomers.
“The strong growth we’re seeing in Texas reinforces our belief that reverse mortgages remain a safe, cost effective and critical retirement option for senior homeowners as they evaluate their financial plans,” said Norman.
Written by Alyssa Gerace