Reverse Mortgage Market Currently at $4.3 Trillion, Less than 1% Penetrated, According to the NRMLA/Hollister Reverse Mortgage Market Index

WASHINGTON, June 28 /PRNewswire/ -- Americans age 62 or older hold an estimated $4.3 trillion of home equity according to the NRMLA/Hollister Reverse Mortgage Market Index (RMMI). Although the reverse mortgage industry has seen tremendous growth in the last five years, only a little more than 300,000 reverse mortgages have been originated in its short history, representing less than 1% market penetration.

The index, launched today by the National Reverse Mortgage Lenders Association (NRMLA) and The Hollister Group is the first market indicator to collect critical market, housing and demographic data, and to track and project the market for reverse mortgages.

In the first quarter 2007 alone, there was a $19 billion increase in senior home equity. This increase was reflected in a 0.4% increase in the RMMI to 205.6 from 204.7 in the prior quarter. The index will reflect the current value of senior home equity on a quarterly basis.

Interesting observations and statistics from the inaugural launch of the RMMI, include:

  -- RMMI projects as much as $37 trillion in home value by 2030, from which
     home equity figures are derived, assuming historical appreciation and
     taking into account the demographic shift as boomers begin to turn 62;
  -- The average home equity in a senior-owned household is estimated to be
     about $230,000 according to the Hollister Group;
  -- Current $19B growth in Q1 2007 is the lowest increase of all quarters
     from 2000;
  -- 2004 and 2005 experienced the strongest growth in home equity -- $464
     billion and $600 billion respectively.

  About NRMLA

National Reverse Mortgage Lenders Association (NRMLA) represents the reverse mortgage industry, serving as an educational resource, policy advocate and public affairs center for lenders and related professionals. NRMLA was established in 1997 to enhance the professionalism of the reverse mortgage business. For more information, visit http://www.nrmlaonline.org/.

About Hollister Group

Hollister Group LLC is a consulting and financial analytics firm with specialization in reverse mortgage products. Hollister provides consulting to the reverse mortgage industry in new market entry, new products, and best execution. The Hollister Group is also supporting the reverse mortgage industry with unique data and analytics. http://www.hollisterllc.com/.

  Contact:

  Frank Piemonte
  River Communications
  914-686-5599
  fpiemonte@riverinc.com

  Darryl Hicks
  NRMLA
  202-939-1784
  Dhicks@DWORBELL.com

  Liz Scholz
  Hollister Group LLC
  703-956-5200
  lscholz@hollisterllc.com