Minnesota Reverse Mortgage Information and Facts
Minnesota Reverse Mortgage Information Overview
1. Census Data Relevant to the Minnesota Reverse Mortgage Market. It is helpful to understand the demographic make-up of Minnesota's reverse mortgage eligible population. The following information comes from the US Census Bureau's 2005 American Community Survey.
| State | Median Age | State Rank | % Pop Over 65 | State Rank | % Pop Over 85 | State Rank | % of Households w/Retirement Income | State Rank | % Owner Occupied | State Rank |
|---|---|---|---|---|---|---|---|---|---|---|
| MN | 36.7 | 31 | 11.6 | 40 | 1.4 | 19 | 14.8 | 47 | 75.8 | 1 |
The Census Bureau projects the senior citizen population in Minnesota will change as follows in the years ahead:
| State | 2010 Projected Pop. Over 65 | 2010 Projected % Pop. Over 65 | State Rank | 2030 Projected Pop. Over 65 | 2030 Projected % Pop. Over 65 | State Rank |
|---|---|---|---|---|---|---|
| MN | 670,429 | 12.4 | 40 | 1,193,124 | 18.9 | 21 |
2. Minnesota's Home Value Growth. Home price increases are an important factor in the reverse mortgage decision. The information below comes from the quarterly Housing Price Index (HPI) published by the Office of Federal Housing Enterprise Oversight (OFHEO). These figures indicate the average percentage gain in value for homes in Minnesota for the most recent 1-year and 5-year periods and, also, how the HPI rankings for Minnesota compare to other states. Clearly, senior homeowners in areas with strong home price appreciation and substantial accumulated home equity are more apt to consider a reverse mortgage as a supplemental source of retirement income. Figures are updated quarterly (most recent update made 2/28/08 reporting 4th Quarter 2007 results).
| State | 1 Year % Home Value Increase | State Rank | 5 Year % Home Value Increase | State Rank |
|---|---|---|---|---|
| MN | 7 | 44 | 28.58 | 38 |
3. Section HECM Loan Limits for Minnesota. The federally-insured Home Equity Conversion Mortgage (HECM) program has limits on the size of loan that can be insured. These are known as "203b limits" and are set by HUD for each county in each state. Click on the link below for a list of current 203b Limits for each Minnesota county.
Minnesota Limits for HECM Loans by County
4. Reverse Mortgage Loan Activity in Minnesota. Since September 2001, a total of 5,184 HECM reverse mortgages have been endorsed by HUD Offices located in Minnesota. Minnesota reverse mortgage endorsements represent 1.4% of the total 361,591 reverse mortgages originated throughout the United States during this timespan.
Over the past few years, the volume of reverse mortgage originations has grown in Minnesota as well as the rest of the country. Following are HECM reverse mortgage statisitics for the period from September 2001 up to the current month (Sep-2008). The first chart shows the distribution of HECM loan originations by Minnesota HUD Office region and the second chart shows year-to-year HECM loan growth. Further information on HECM loan activity can be found using the HECM Data Tool.
| Federal Office Location | HECM Loans Sep-2001 to Sep-2008 |
|---|---|
| MINN ST PAUL | 5,184 |
| Calendar Year | HECM Loans Sep-2001 to Sep-2008 |
|---|---|
| 2001 | 57 |
| 2002 | 279 |
| 2003 | 536 |
| 2004 | 797 |
| 2005 | 736 |
| 2006 | 1,139 |
| 2007 | 1,247 |
| 2008 | 393 |
5. Minnesota Reverse Mortgage Lenders. So, who are Minnesota's top reverse mortgage lenders? The following table shows Minnesota's top 25 originators of HUD HECM loans thus far for calendar year 2008:
| Top Minnesota HECM Lenders | HECM Loans 2008 |
|---|---|
| WELLS FARGO BANK NA | 191 |
| FINANCIAL FREEDOM SENIOR FUNDI | 22 |
| M AND I MARSHALL AND ILSLEY BA | 14 |
| COUNTRYWIDE BANK FSB | 12 |
| LIBERTY REVERSE MORTGAGE INC | 12 |
| OMNI HOME FINANCING INC | 12 |
| STAY IN HOME MORTGAGE INC | 12 |
| PRESTIGE MORTGAGE | 11 |
| BANK OF AMERICA NA CHARLOTTE | 10 |
| KLEINBANK | 9 |
| AMERICAN MORTGAGE CORPORATION | 6 |
| CARTERET MORTGAGE CORPORATION | 6 |
| WESTERN NATIONAL BANK DULUTH | 4 |
| MIDCOUNTRY BANK | 4 |
| BELL AMERICA MORTGAGE LLC | 4 |
| MOUNTAIN PACIFIC MORTGAGE CO | 4 |
| AMERICAN RESIDENTIAL MORTGAGE | 4 |
| CENTENNIAL MORTGAGE AND FUNDIN | 4 |
| CREDO MORTGAGE INC | 4 |
| BANKERS MORTGAGE CO LLC | 4 |
| LAKE COMMUNITY BANK | 3 |
| CHERRY CREEK MORTGAGE CO INC | 3 |
| FIRST MARINER BANK | 3 |
| VANGUARD M AND T INC | 3 |
| MORTGAGES UNLIMITED INC | 3 |
The table below provides a longer term view of Minnesota's top 25 lenders looking at the period from September 2001 up to the current month (Sep-2008). For a complete listing of Minnesota reverse mortgage lenders, use this Minnesota reverse mortgage lender directory.
| Top Minnesota HECM Lenders | HECM Loans Sep-2001 to Sep-2008 |
|---|---|
| WELLS FARGO BANK NA | 2,433 |
| WELLS FARGO HOME MORTGAGE INC | 805 |
| FINANCIAL FREEDOM SENIOR FUNDI | 254 |
| SEATTLE MORTGAGE COMPANY | 212 |
| M AND I MARSHALL AND ILSLEY BA | 188 |
| LIBERTY REVERSE MORTGAGE INC | 129 |
| WESTERN NATIONAL BANK DULUTH | 102 |
| CREDO MORTGAGE INC | 92 |
| PRESTIGE MORTGAGE | 92 |
| CENTENNIAL MORTGAGE AND FUNDIN | 88 |
| PEOPLES TRUST MORTGAGE LLC | 79 |
| HOMESTEAD MORTGAGE CORPORATION | 69 |
| AMERICAN MORTGAGE CORPORATION | 56 |
| RICHFIELD BANK AND TRUST CO | 51 |
| STAY IN HOME MORTGAGE INC | 42 |
| AMERICAN RESIDENTIAL MORTGAGE | 41 |
| PRIME MORTGAGE CORP | 30 |
| KLEINBANK | 27 |
| BANKERS MORTGAGE CO LLC | 22 |
| FIDELITY FIRST MORTGAGE COMPAN | 21 |
| MORTGAGE PLUS FINANCIAL CORP | 21 |
| LAKE COMMUNITY BANK | 20 |
| PACIFIC REVERSE MORTGAGE INC | 20 |
| TIMBERLAND MORTGAGE SERVS INC | 19 |
| LAKELAND MORTGAGE CORPORATION | 18 |
ATTENTION REVERSE MORTGAGE LENDERS - if you are listed above as one of Minnesota's top reverse mortgage lenders, you should consider turning your listing into a clickable hyperlink that will take visitors directly to your company's website. Your "live" link will appear for every state that you rank in the top 25 lenders. Reverse-Mortgage-Information.org is one of the leading sites on the web for seniors seeking independent information about reverse mortgages. For more information,
contact us
.
