Turnaround: After more than a decade of high volatility, the industry is expected to stabilize

After a decade of significant volatility, the Reverse Mortgages Providers industry has finally beginning to stabilize over the five years to 2017. Prior to 2012, the industry was dominated by major banks and financial institutions, but in 2011, Wells Fargo and Bank of America stopped offering reverse mortgages. Additionally, in 2012, MetLife exited the industry. While these companies stopped issuing reverse mortgages, they continued to maintain their outstanding loans during the five-year period. As a result, instead of an immediate decline, as experienced in most industries, revenue declined steadily as these loans were paid off. Over the five years to 2022, the industry is anticipated to stabilize and experience modest growth...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 12-17
-12.2%
Forecast Growth 17-22
Profit
Employment
7,823
Businesses
425
Market Share of Companies
There are no companies with a dominant market share in this industry
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Industry Threats & Opportunities

  • The exit of major financial institutions has led to significant declines over the past five years
  • The industry is primarily made up of small banks and companies specializing in reverse mortgages
  • While revenue growth is expected to be slow, it is also expected to be stable
  • Industry Report - Industry Key Buyers Chapter

    The Reverse Mortgages Providers industry is expected to have a low level of market share concentration in 2017. The three largest companies in the industry are expected to account for less than 10.0% of total industry revenue. Industry concentration has fluctuated significantly over the five years to 2017. In 2012, MetLife exited the industry and stopped offering reverse mortgages. Additionally, the year prior, Bank of America and Wells Fargo stopped issuing reverse mortgages. While these companies stopped issuing reverse mortgages, they continued to honor and service their existing loans. As a result, their collective market share has declined steadily over the past five years, instead of immediately dropping off, like most companies do when they leave an industry. Sin...purchase to read more.

    Additional Insights for the Reverse Mortgages Providers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Reverse Mortgages Providers Industry are

  • Having a good reputation
  • Aggressive marketing and advertising
  • Localized knowledge
  • IBISWorld analysts also discuss how external factors such as Number of adults aged 65 and older and Homeownership rate in the Reverse Mortgages Providers industry impact industry performance..

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    What is the Reverse Mortgages Providers Industry?

    This industry includes private industry companies that originate, broker and service reverse mortgage loans. Reverse mortgages are loans available to seniors that are used to release funds from their home’s equity in one lump sum or multiple payments.

    Industry Products
  • Single-purpose reverse mortgages
  • Home equity conversion mortgages
  • Proprietary reverse mortgages
  • Industry Activities
  • Originate reverse mortgage loans
  • Broker reverse mortgage loans
  • Service reverse mortgage loans
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of adults aged 65 and older
  • Homeownership rate
  • Personal savings rate
  • Number of deaths
  • Private spending on home improvements

  • Current Performance
  • How they work
  • Heavy regulation
  • Demographic drivers
  • Chart: Revenue Growth

  • Industry Outlook
  • Changing companies
  • Regulation
  • Demand drivers
  • Table: Reverse Mortgages Providers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Reverse Mortgages Providers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Commercial Banking
  • Credit Unions
  • Loan Brokers

  • Products & Services
  • Home equity conversion mortgages
  • Proprietary reverse mortgages
  • Single-purpose reverse mortgages
  • Chart: Reverse Mortgages Providers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Couples
  • Individual men
  • Individual women
  • Chart: Major Market Segmentation for the Reverse Mortgages Providers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Interest expenses and provisions for credit losses
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Reverse Mortgages Providers

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Reverse Mortgages Providers Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Reverse Mortgages Providers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Reverse Mortgages Providers Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of adults aged 65 and older (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hecm
  • Home Equity Conversion Mortgages, another name for federally insured reverse mortgages
  • Hud
  • Acronym for the Department of Housing and Urban Development, the government department that backs federally insured reverse mortgages
  • Proprietary Reverse Mortgage
  • Reverse mortgages provided by the private companies that develop them
  • Why buy this report?

    IBISWorld’s Industry Market Report on Reverse Mortgages Providers is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Reverse Mortgages Providers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Reverse Mortgages Providers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Reverse Mortgages Providers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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