The National Reverse Mortgage Lenders Association recently announced that the industry has closed 112,100 Home Equity Conversion Mortgages or HECMs in Fiscal Year (FY) 2008, which ended September 30, 2008, surpassing the record loan volume for FY 2007, according to data provided by the Department of Housing and Urban Development (HUD). Reverse mortgages continue to be one of the few areas of growth within the mortgage industry that has seen its volumes obliterated by the credit crunch. The total HECMs in 2007 totaled 107,558, showing only at 5,000 loan increase year over year. These figures represent the FHA Insured Reverse Mortgages and are not inclusive of any proprietary reverse mortgages that private lenders may have offered. Once the credit markets stable and housing prices finally find a solid bottom, this number should continue to grow much faster than it did between 2007 and 2008.
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