Over 300,000 HECM Reverse Mortgages Closed

6/28/2007

posted by N. Sioris

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Recent statistics from HUD (Housing and Urban Development) indicate that since 1990, more than 308,000 senior homeowners have taken advantage of the federally insured Home Equity Conversion Mortgage otherwise known as HECM reverse mortgage. The number of FHA insured reverse mortgages has been steadily rising over the past 17 years, but the largest increase has taken place over the past six years. Between 2000 and 2006 the number of reverse mortgages backed by FHA has increased 10-fold.

In 2006 there were 76,000 seniors that obtained a reverse mortgage through HUD, compared to 6,637 in 2000. At the time of this writing, mid 2007, there have all ready been 69,833 FHA insured HECM reverse mortgages closed year to date. The HECM Reverse Mortgage continues to be the most popular reverse mortgage loan currently available. However, there are new proprietary reverse mortgages being introduced to the marketplace as new lenders enter this thriving niche market. Competition is expected to bring about lower costs, better service, and more choices.

More than 34 million Americans are currently over age 65. That number is expected to increase to almost 70 million by the year 2030, and will represent 20% of the population. Reverse Mortgages are expected to play a role in helping this huge aging population to maintain financial independence and security later in life.