- For some seniors reverse mortgages can be a very valuable tool to preserving health and dignity.
According to the Federal Reserve, seniors 62 and older account for $4.3 trillion in home equity out of the nation’s total of $11 trillion.
In recent years, reverse mortgages for the mature market have grown from a small demonstration program to an established financial tool with over 50,000 loans originated per year. While this success reflects the growing importance of these loans, U.S. Department of Housing and Urban Development (HUD) appropriations for mandatory reverse mortgage counseling has not kept pace with rising demand. Increasing numbers of frail and impaired older borrowers will further heighten this financing challenge for HUD. In a recent National Council on Aging (NCOA) study, we estimate that about 13 million older households are candidates for using a reverse mortgage to pay for long-term care at home (1).
(1) Source: Stucki, BR (2005). Use Your Home to Stay at Home. Expanding the Use of Reverse Mortgages for Long-Term Care: A Blueprint for Action. Washington, DC: National Council on Aging.
Filed under: Finances, Statistics, TR Mann | Tagged: 62 and older, borrowers, Federal Reserve, frail, home, home equity, HUD, loans, long-term care, mature market, National Council on Aging, NCOA, older, reverse mortgages, seniors, U.S. Department of Housing and Urban Development
