Industry News

Reverse mortgage activity surges

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The volume of federally insured reverse mortgages taken out by older homeowners in recent months has increased by 76 percent from a year ago, as a blistering record pace of originations continues, according to the National Reverse Mortgage Lenders Association. NRMLA attributed the surging popularity of reverse mortgages to several factors, including greater consumer awareness of and comfort with the product, and the increasingly tighter budgets of America's seniors. "While some signs suggest a recovering economy, many retirees are still struggling day-to-day to live comfortably or make ends meet," said NRMLA President Peter Bell. "As a result of this, more and more older Americans are turning to reverse mortgages as the solution to their financial needs. With the help of a reverse mortgage," he continued, "these seniors find they can cope with the myriad of financial pressures that include rising out-pocket-costs for medical care and prescription drugs, increasing property taxes on...