California Tops List of Most Popular States for Reverse Mortgages

July 19, 2021

Map and images illustrating the figures in the article.

AAG Releases Top 10 Most Popular States for Reverse Mortgages

Irvine, Calif. (July 20, 2021) – As home values continue to appreciate across the country, Americans aged 62 and older are cashing in on their lifelong investment using Home Equity Conversion Mortgages (HECMs) or reverse mortgages, as they’re more commonly known. To discover which areas of the country reverse mortgages are utilized most, American Advisors Group (AAG), the nation’s leader in home equity solutions, researched over 47,000 reverse mortgages in 2020 to release its list of the Top 10 Most Popular States for Reverse Mortgages.

2020 Top Ten States in Reverse Mortgage Volume

California
Florida
Colorado
Texas
Arizona
Washington
Utah
Oregon
New York
North Carolina

California topped the list in 2020 with 11,921 total loans and has been the number-one state in HECM volume since 2016. Los Angeles County was by far the most popular county in the state for reverse mortgages in 2020 with 3,068, followed by San Diego County with 1,256 loans and Orange County with 1,145 loans. It’s no surprise that California leads the list with the average home values increasing every year for the last five years. In second place, Florida has held as the number-two most popular state in volume over the same period of time and its top county in 2020 was Miami-Dade with 519 total loans.

Reverse mortgages have become increasingly popular in Colorado over the past few years as it has climbed from number five on the list in 2016, to number three in loan volume in 2020. Not only has the total volume increased in Colorado, but if we look at the total loan amounts in comparison to each state’s senior population, Colorado has ranked number one since 2019.

“Seniors throughout the country are taking advantage of the strong housing market and tapping into their home equity to create financial flexibility,” said AAG Chief Marketing Officer Martin Lenoir. “While California has historically been a popular market for the reverse mortgages, we’re starting to see greater adoption in many more states such as Colorado and Utah. Seniors are realizing that their growing home equity is one of their greatest assets and that now is the time to utilize it.”

To determine these results, AAG researched over 225,000 loans endorsed by the Department of Housing and Urban Development (HUD) over a five-year period. All loans in the findings were HECMs with backing from the Federal Housing Administration (FHA) and were funded by various lenders, not only AAG. According to the National Reverse Mortgage Lenders Association (NRMLA), seniors now own over $8 trillion in home equity across the United States.

About AAG

AAG, now a division of Finance of America Reverse (FAR), continues its dedication to helping older Americans find new ways to fund a better retirement through the responsible use of home equity. AAG offers a suite of home equity solutions — including Home Equity Conversion Mortgages and proprietary reverse mortgages, that are designed to give seniors a better financial outcome in retirement. Following the asset acquisition of AAG by FAR in April 2023, FAR and AAG together make up one of the largest reverse mortgage companies in the US. The company is licensed nationally (NMLS #2285) and is a proud member of the National Reverse Mortgage Lenders Association (NRMLA). For more information about AAG, please visit www.aag.com.

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AAG/American Advisors Group are divisions of Finance of America Reverse LLC which is licensed nationwide | Equal Housing Opportunity | NMLS ID # 2285 (www.nmlsconsumeraccess.org) | 8023 East 63rd Place, Suite 700 | Tulsa, OK 74133

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These materials are not from HUD or FHA and were not approved by HUD or a government agency.

©2023 American Advisors Group/AAG are divisions of Finance of America Reverse LLC which is licensed nationwide* | Equal Housing Opportunity | NMLS ID # 2285 (www.nmlsconsumeraccess.org) | 8023 East 63rd Place, Suite 700 | Tulsa, OK 74133 | AZ Mortgage Banker License #0921300 | Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act | Georgia Residential Mortgage Licensee #23647 | Kansas Licensed Mortgage Company | Massachusetts Lender/Broker License MC2285: Finance of America Reverse LLC | Licensed by the N.J. Department of Banking and Insurance | Licensed Mortgage Banker — NYS Banking Department where Finance of America Reverse is known as FAReverse LLC in lieu of true name Finance of America Reverse LLC | Rhode Island Licensed Lender | Not all products and options are available in all states | Terms subject to change without notice | For licensing information go to: www.nmlsconsumeraccess.org

*Finance of America Reverse LLC does not do business as American Advisors Group/AAG in the following jurisdictions: Alaska, Hawaii, Maryland, Nevada, and New York.

FAReverse LLC i/l/t/n Finance of America Reverse LLC is Licensed Mortgage Banker in the State of New York, but this site is not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site.

For Reverse Loans: When the loan is due and payable, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to borrowers, who may need to sell the home or otherwise repay the loan with interest from other proceeds. The lender may charge an origination fee, mortgage insurance premium, closing costs and servicing fees (added to the balance of the loan). The balance of the loan grows over time and the lender charges interest on the balance. Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial). We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must occupy home as their primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan also becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms. Interest is not tax-deductible until the loan is partially or fully repaid.

STATE OF ILLINOIS COMMUNITY REINVESTMENT NOTICE The Department of Financial and Professional Regulation (Department) evaluates our performance in meeting the financial services needs of this community, including the needs of low-income to moderate-income households. The Department takes this evaluation into account when deciding on certain applications submitted by us for approval by the Department. Your involvement is encouraged. You may obtain a copy of our evaluation. You may also submit signed, written comments about our performance in meeting community financial services needs to the Department. V2023.05.18

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