Reverse
The reverse mortgage business may comprise a small fraction of the overall housing market, but it’s an important one. For many retirees, reverse mortgages are the most cost-effective alternative income source because the proceeds from tapping into home equity with a reverse mortgage are not taxable. Plus, reverse mortgages can be an essential risk mitigation tool for millions of homeowners — and recent studies have shown 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.
Over the last couple of years, the industry experienced heightened reverse mortgage activity due to the COVID-19 pandemic, and reverse mortgage lenders are also optimistic about the recently increased Home Equity Conversion Mortgage (HECM) lending limit. The HECM limit was boosted from $970,800 in 2022 to $1,089,300 in 2023, and the new higher limit will offer more benefits to prospective borrowers while giving borrowers with a reverse mortgage the opportunity to re-qualify and obtain new loans.
In addition, trillions of dollars in housing wealth has been collected by homeowners ages 62 and older in recent years because of the massive growth in property values. This means there may be even more opportunity for the reverse mortgage business to grow by providing education and insight into how reverse mortgages can benefit senior homeowners who are seeking to increase their cash flow during retirement.
You can find comprehensive news and coverage of the reverse mortgage industry at Reverse Mortgage Daily, our sister website, located at reversemortgagedaily.com.
Latest Posts
Liberty Reverse parent reports 86% jump in reverse mortgage volume, updates for RMS HW+
Nov 09, 2021Ocwen Financial has reported that Liberty Reverse Mortgage has increased its volume 86% year-over-year, and that it has high hopes for expanding into the reverse mortgage sub-servicing market.
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Finance of America says reverse mortgages are ‘important’ to diverse product range HW+
Nov 08, 2021 -
Alternate equity companies see a lot of potential in senior citizens HW+
Oct 29, 2021 -
A second reverse lender is targeting Gen X with private-label products HW+
Oct 26, 2021 -
CFPB settles with reverse lender over “deceptive” home estimates HW+
Oct 08, 2021 -
Reverse mortgage volume drops in August HW+
Sep 15, 2021 -
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