Reverse mortgages hit 1-million loan milestone

by Ryan Smith15 Nov 2016
Reverse mortgages have hit a major milestone: FHA-insured Home Equity Conversion Mortgages have surpassed 1 million loans since the birth of the program.

The FHA endorsed 3,919 reverse mortgages in October, according to a report in Reverse Mortgage Daily. That brings the total number of HECMs issued up to 1,002,679 since the program began 27 years ago.

“As an industry, we are proud to offer a financial product that helps older adults supplement their retirement funds while living in their own homes,” Peter Bell, NRMLA president and CEO, said in a press release. “We are grateful to the U.S. Department of Housing and Urban Development, and especially to the work of the late Ed Szymanoski, for modeling the original pilot program that made the HECM program possible.”

Although the program surpassed a million loans, 2016 has been one of the slowest fiscal years for reverse mortgage volume in more than a decade, according to Reverse Mortgage Daily. FY 2016 finished with 48,902 loans – a drop of nearly 16% from Fiscal 2015. The last time HECM volume fell under 50,000 units was Fiscal 2005.