Posts Tagged ‘reverse mortgage’

Senior Home Equity Hits All-Time High

Posted on August 03, 2017 by Laura Lam

Senior homeowners saw an increase in their home equity in the first quarter of 2017, according to a report from the National Reverse Mortgage Lenders Association (NRMLA).  The report showed homeowners aged 62 and older saw their home equity increase by 3.1% to $6.3 trillion in the first quarter. This is up from $6.13 trillion from the fourth quarter. This growth in housing wealth for seniors was driven by an estimated 2.6%, or $199.3 billion, increase in senior home values, and was offset by a 0.6% increase in senior-held mortgage debt which totaled $9.2 billion. The NRMLA/RiskSpan Reverse Mortgage Market Index, a…

Will These Mortgage Trends Make a Comeback in ’17?

Posted on January 05, 2017 by Laura Lam

The boom-bust cycle of refinancing and a host of other mortgage trends and strategies tend to come and go and come again depending on varying factors.  “It is a cyclical business,” said David Kittle, president of The Mortgage Collaborative.  It’s been a while since the cycle has turned, but it’s finally expected to this year due to the new administration and Congress and the recent rise in rates. Some mortgage-related ideas and market conditions from the past are likely to be back as a result.  Not all of the following retro industry market trends or proposals may become realities in…

Reverse Mortgages Safer But Still Have Issues

Posted on May 17, 2016 by Laura Lam

Across the nation, a sticky subgroup of foreclosure cases involves reverse mortgages.  These loans, usually taken out by seniors, are heavily promoted in advertising and aimed at persuading older Americans to borrow using the equity in their homes. The attraction? Generally, there is nothing to be repaid until the borrower dies, moves out or sells the home. Consumer groups have long railed against reverse mortgages, saying they were often misrepresented by eager salespeople, setting heirs of the borrowers up for shocking balances due on houses that children assumed they’d inherit debt-free.  Now, such groups as AARP and Consumers Unions –…

Housing Bubble 2.0: ARMs & Reverse Mortgages are Back

Posted on March 31, 2014 by Saldutti

The housing recovery may have already peaked but some hallmarks of the boom era are making a comeback: Adjustable-rate mortgages and reverse mortgages In the fourth quarter, 31% of mortgages between $417,000 and $1 million were adjustable vs. fixed-rate, up from 22% a year earlier and the highest percentage since the third-quarter of 2008.  For mortgages above $1 million, 61% were adjustable, up from 56% a year earlier. In 2013, $15.3 billion in reverse mortgages loans were issued – via a government-backed program that allows seniors to borrow against the equity in their homes – up 20% vs. 2012, Reuters…