10 cities where senior home equity is most at risk - HECMWorld.com Skip to content
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10 cities where senior home equity is most at risk

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If there’s a time older Americans could potentially utilize their home’s equity it is now, thanks to record high inflation. However, that window of opportunity is closing thanks to a softening housing market. Redfin reports that…

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Editor in Chief: HECMWorld.com
 
As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.
 
Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.
 
Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.

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2 Comments

  1. Shannon,

    Excellent statistical information, those that have watched received valuable information to use in their origination efforts. You offer the industry usefull information Shannon.

    Thanks for your broadcasts,

    John

  2. Unfortunately, the number of senior households who own this home equity is not cited in the original sources providing such information.
    Assuming that the number of senior homeowners is 40 million, the mean home equity owned by a senior homeowner is $275,000. Of course, this certainly is not all that meaningful to those with less than $275,000 in home value nor is it all that meaningful to those with millions in home value who also possess home equity in equal or lower millions.

    What is needed is information based on a meaningful strata of home values with the related 1) home equities and 1) number of senior homeowners in that stratum also provided. Until that information is developed and reported periodically, total home equity of senior homeowners is an interesting talking point lacking meaningful and relevant substance.

    To believe that the information that is provided through most publications on real estate and mortgages is reasonably accurate is not far fetched but to believe that it is meaningful , current, and relevant may be reaching for “a bridge too far” for comfort. Numbers are just that, numbers. They may help with deciding how to successfully market yet they may be too old to be relevant to a highly successful marketing campaign. For example, HUD’s monthly HECM Snapshot Report is helpful in analyzing endorsement data but such data comes to us about four months on average after the relevant application was taken. That means that the Principal Limit reflects an appraisal that is months old which is based on sales data that is generally more than a month old when reported in the appraisal.

    As a skeptic by professional training as a CPA years ago, age of the information we rely upon is critical to the sales results we want to obtain in this industry, while talking points can be reasonably old or recent, depending on the topic at hand. Discernment is a slippery yet valued attribute when used in a manner not intended to harm others.

    Once you have the broad information that a trusted provider like Shannon presents, then for that information to be pragmatically useful in marketing success at a reasonable cost the work in analyzing that data has yet to start.

    Shannon, the information you provide is most appreciated but for it to be useful in marketing, the analytical work must quickly start from there.


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