Washington, DC – January 18, 2011 – Data released today by the National Reverse Mortgage Lenders Association (NRMLA) shows senior home equity increased $46 billion in the third quarter of 2011. Seniors have $3.19 trillion in home equity available according to the most recent NRMLA/Risk Span Reverse Mortgage Market Index (RMMI) report.
“This data further demonstrates that the home must be considered as part of the funding longevity equation. Reverse mortgages are a creative tool to help seniors better use the assets they have to safely fund retirement,” says Peter Bell, President and CEO of the National Reverse Mortgage Lenders Association.
The NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) showed signs of stabilizing in the third quarter of 2011, increasing by 1.5% to 152.0. In the third quarter, housing prices in 69% of the 395 Metropolitan Statistical Areas (MSA) (including eight of the ten biggest MSAs) tracked by FHFA and RiskSpan saw quarter-over-quarter increases, sending aggregate senior housing values up 1.0% to $4.2 trillion. Senior mortgage debt levels fell for the 10th straight quarter to $1.02 trillion, leaving seniors with $3.19 trillion in equity.
“The home is, by far, the largest financial asset most families have for use in retirement,” saidBell, “Reverse mortgages have evolved from a circumstance-based product to an accepted forward looking tool used for financial planning.”
The NRMLA/Risk Span Reverse Mortgage Market Index (RMMI) measures the current value of home equity owned by seniors, and is updated on a quarterly basis.