The latest actuarial report of the Federal Housing Administration’s reverse mortgage program shows estimates of the overall economic value of the HECM portfolio will fall to negative $503 million in fiscal year 2010 but increase to $5.8 billion in 2017.
According to the report, the increase in value is most significant between FY 2010 and FY 2011 − where the economic value of the individual books of business is estimated to increase from negative $772 million for the FY 2010 book to positive $538 million for the FY 2011 book. The increase is due to various reasons, including higher premium rates, the introduction of the HECM Saver, and the forecasted house price recovery.
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