Reverse
According to the National Reverse Mortgage Lenders Association, homeowners aged 62 and older have collected over $10 million in housing wealth because of the recent growth in property values. For many retirees, the most cost-effective alternative income source comes from tapping into home equity via a reverse mortgage because the proceeds are not taxable.
According to a recent study by Finance of America Reverse, reverse mortgages can provide an essential risk mitigation tool for millions of retirees—dramatically reducing exposure to longevity and market risks while also growing their investment portfolios. It stated that retirement strategies that use a reverse mortgage as an alternative source of cash flow to a traditional investment portfolio hold the greatest benefit for Americans with $100,000 to $1.5 million in investable assets.
In 2021, the industry experienced generally heightened reverse mortgage activity stemming from the economic impact of the COVID-19 pandemic. June marked the first time in five months that the wholesale channel outperformed the retail channel. California had the most reverse mortgage originations, followed by Colorado – according to an analysis by Inside FHA/VA Lending. Through the third quarter of 2021, California had a 36.6% share of reverse mortgages, compared to Colorado’s 7.3% share.
Reverse mortgage lenders are optimistic about the increased Home Equity Conversion Mortgage (HECM) lending limit to $970,800 in 2022. The higher limit provides higher benefits to prospective borrowers and gives borrowers with a reverse mortgage an opportunity to re-qualify and obtain a new loan.
Find even more news and coverage of the reverse mortgage industry at our sister website, reversemortgagedaily.com
Latest Posts
Reverse mortgage volume drops in August HW+
Sep 15, 2021The reverse mortgage volume boom appears to have diminished for now, at least if new data is any indication. HECM endorsements fell 14.3% in August, according to RMI
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Alt equity firm Point says it won’t abandon reverse mortgage space HW+
Sep 14, 2021 -
One lender begins targeting Gen X for reverse mortgages HW+
Sep 02, 2021 -
Reverse mortgage pro fact-checks product claims by Dave Ramsey HW+
Sep 01, 2021 -
A financial planner on which clients benefit from reverse mortgages HW+
Aug 30, 2021 -
Reverse mortgage industry courts financial planners HW+
Jul 30, 2021 -
Strong refi business, low rates aren’t growing reverse mortgage audience HW+
Jul 28, 2021 -
Reverse mortgages improved, but issues remain says FHA HW+
Jul 16, 2021 -
Mr. Cooper exits reverse servicing space with sale to MAM HW+
Jul 07, 2021 -
Finance of America unveils hybrid reverse mortgage product HW+
Mar 11, 2021 -
HUD extends waivers for FHA reverse mortgages HW+
Feb 03, 2021 -
DOJ files complaint against lender for alleged use of unqualified underwriters and forgery HW+
Oct 01, 2020