Reverse Mortgage Volume Down 31% in Fiscal Year 2010

Declines in home prices and uncertainty in the mortgage market have brought reverse mortgage production down significantly in 2010.  Data released from the Department of Housing and Urban Development shows that during the fiscal year of 2010 which ended September 30, shows that 79,096 reverse mortgages were endorsed during 2010, down 31.1% from same period in 2009.  Hope for growth for the reverse mortgage industry in 2011 resides in the new HECM Saver and the HECM purchase products as well as the aging population in the United States.  Even though the aging baby boomer population presents a growing target market for reverse mortgages, the industry will need home prices to stabilize further and possibly increase before meaningful growth will return.