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Article: HECM loans to increase as baby boomers retire.(Briefing Book)(Federal Housing Administration)(Home Equity Conversion Mortgage)
- Article from:
- Mortgage Banking
- Article date:
- July 1, 2007
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Copyright informationCOPYRIGHT 2007 Mortgage Bankers Association of America. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Demand for the FHA's Home Equity Conversion Mortgage (HECM) loans, or reverse mortgages, is increasing and is expected to continue to rise as the baby boom generation enters its retirement years, according to a study by HUD's Office of Policy Development & Research (PD & R).
The study--The Home Equity Conversion Mortgage Terminations: Information to Enhance the Developing Secondary Market--which analyzed 16 years of HECM loan-level data, noted that approximately 77,000 HECM loans were originated in fiscal year 2006. PD & R expects this number to increase to 90,000 loan originations in fiscal year 2007.
HUD said the PD & R research is intended to address the critical ...