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Reverse mortgages growing

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  • There has been a tenfold increase in the number of reverse mortgage loans backed by the FHA between 2000 and 2006. More than 76,000 seniors obtained a reverse mortgage through HUD in 2006, compared to just 6,637 people in 2000.
  • Since 1990, more than 308,000 senior homeowners have used HUD’s reverse mortgage program, which covers almost 90 percent of the reverse mortgage market, to borrow against the equity in their homes.
  • By mid-2007, the FHA had already backed 69,833 loans, putting the Home Equity Conversion Mortgage (HECM) program on pace to surpass its 2006 total before fall.
  • States with large numbers of reverse mortgages: California, Florida, New York, Texas, New Jersey.

Source: Federal Housing Administration