Download or read book Reverse Mortgage Risks written by J. Burton Anderson and published by Lions Pride Publishing Co., LLC. This book was released on 2014-09-15 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is an extensive study of the many risks inherent in assuming a reverse mortgage. In over 31,000 words it explores the many misconceptions about this "safe, tax free, government money" and explains what occasions a reverse mortgage might be a good idea. It also explains the imminent changes to the program which will make reverse mortgages far less desirable in any situation.
Download or read book Reverse Mortgage Dangers written by Jim Anderson and published by Createspace Independent Pub. This book was released on 2012-07-07 with total page 98 pages. Available in PDF, EPUB and Kindle. Book excerpt: Licensed Loan Originator Jim Anderson has participated directly in the Reverse Mortgage industry as an insider for a decade and come to startling conclusions. Risking his career to help seniors avoid making a costly mistake, he wrote Reverse Mortgage Dangers as a daring warning. Seldom are senior citizens given all possible negatives of this “free no-risk money”, and told the many pitfalls they must seriously consider before signing anything. “Sometimes a reverse mortgage is a good idea, but most often it is not”, declares Anderson. He explains the pros, cons, pitfalls, drawbacks and disadvantages of this poorly-understood financial instrument. This unique book explains the many secrets of this highly-touted “safe and secure free seniors' money” , covering scams, frauds, and other problems. Is a reverse mortgage ever a good idea? Is it a banking scheme or a government blessing? This unique fact-filled book has all the remarkable useful answers.
Download or read book Reverse Mortgage Risks written by J. Burton Anderson and published by Lion's Pride Pub.. This book was released on 2014-09-14 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Reverse Mortgage Risks" is a complete carefully-researched dissertation on the pros, cons, downsides and disadvantages of a Reverse Mortgage. Often touted in commercials by paid celebrity announcers as the greatest product ever created for senior citizens, it is anything but that. There are many "catches" that are seldom revealed up front, and the many supposed "myths" about Reverse Mortgages turn out to be ugly facts! For anyone contemplating actually doing a Reverse Mortgage, the author suggests that they do so in a hurry or risk disappointment. The government, because of the many unintended consequences of Reverse Mortgages (such as a large number of foreclosures) is contemplating soon making many changes that may drastically reduce the amount of cash a senior will be able to access. The author wrote this book to be a fundamental reference manual on Reverse Mortgages. It is not only a must-read for seniors, but also for their adult children as well. It is even suggested that Loan Originators, who often know only what the lenders for whom they work want them to know, should also read this book. Financial Planners, many of whom are clueless about the risks inherent in Reverse Mortgages, should study this book in detail. So might any attorney or accountant who might be asked by a client about the Reverse Mortgage product.
Download or read book Reverse Mortgages and Linked Securities written by Vishaal B. Bhuyan and published by John Wiley & Sons. This book was released on 2010-10-26 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: An institutional investor's guide to the burgeoning field of reverse mortgage securitization Reverse Mortgages and Linked Securities is a contributed title comprising many of the leading minds in the Home Equity Conversion Mortgages (HECM) industry, including reverse mortgage lenders, institutional investors, underwriters, attorneys, and regulators. This book begins with a brief history of reverse mortgages, and quickly moves on to discuss how the industry has evolved-detailing the players in these markets as well as the process. It discusses the securitization of reverse mortgages and other linked securities and includes coverage of pricing techniques and risk mitigation. This reliable resource also takes the time to cover the current regulatory environment of the HECM market, which is constantly changing due to the current state of the real estate market. Highlights specific strategies that will allow institutional investors to benefit from the resurgence of reverse mortgages and linked securities One of the only guides to reverse mortgages and linked securities targeted towards institutional investors interested in securitized products If you want to make the most of reverse mortgages and linked securities, take the time to read this book.
Download or read book Reverse Mortgage written by Daniel Shore and published by Freegulls Publishing House. This book was released on with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: A reverse mortgage allows homeowners aged 62 or older to access a portion of the equity they have built up in their homes over the years. The amount that can be borrowed depends on factors such as the homeowner's age, the appraised value of the home, and current interest rates. One of the key features of a reverse mortgage is that it does not require monthly payments like a traditional mortgage does. Instead, the loan balance increases over time as interest accrues on the borrowed amount. The homeowner retains ownership of the home and can continue to live in it as long as they comply with the loan terms, which typically include maintaining the property and paying property taxes and homeowners insurance. Repayment of the loan is usually deferred until the homeowner moves out of the home permanently, sells the home, or passes away. At that point, the loan must be repaid, usually through the sale of the home. Any remaining equity after the loan is repaid belongs to the homeowner or their heirs. Reverse mortgages can be a valuable financial tool for seniors who need additional income during retirement or want to access their home equity without selling their home. However, they also come with certain risks and considerations, such as potential fees, interest rates, and the impact on inheritances. It's essential for homeowners to carefully consider their options and consult with a financial advisor before deciding if a reverse mortgage is right for them.
Download or read book Selection and Moral Hazard in the Reverse Mortgage Market written by Thomas Davidoff and published by . This book was released on 2004 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explains why selection in the US reverse mortgage market to date has been advantageous rather than adverse. Reverse mortgages let quot;house rich, cash poorquot; older homeowners transfer wealth from the wealthy period after their home is sold to the impoverished period before. Near absence of demand seems to contradict life cycle consumption theory and has been blamed in part on large up-front fees. These fees, in turn, are justified by adverse selection and moral hazard concerns related to length of stay in the home. In fact, reverse mortgage loan histories and the American Housing Survey reveal that single women who are reverse mortgage borrowers depart from their homes at a rate almost 50 percent greater than observably similar non-participating homeowners. This surprising fact appears to arise from the phenomenon that the types of people who wish to take equity out of their homes through reverse mortgage borrowing are also likely to take out the remaining home equity by selling their homes. This mechanism is similar to the heterogeneity in risk aversion proposed by de Meza and Webb (2001) to rationalize advantageous selection in insurance markets. Further results suggest that future declines in price appreciation may generate sufficient moral hazard as to undermine the advantageous selection seen to date.
Download or read book Reversing the Trend The Recent Expansion of the Reverse Mortgage Market written by and published by DIANE Publishing. This book was released on with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Revere Mortgages written by Mathew J. Scire and published by DIANE Publishing. This book was released on 2010-02 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Reverse mortgages -- a type of loan against home equity available to seniors ¿ are growing in popularity. A large majority of reverse mortgages are insured by HUD under its Home Equity Conversion Mortgage (HECM) program. The Housing and Economic Recovery Act of 2008 made several modifications to the HECM program, including changes in how origination fees are calculated and an increase in the loan limit. This report examines: (1) how these changes have affected lenders¿ plans to offer reverse mortgages; (2) how the changes will affect borrowers; and (3) actions HUD has taken to evaluate the financial performance of the HECM program. Includes recommendations. Charts and tables.
Download or read book Reverse Mortgages written by United States. Congress. Senate. Special Committee on Aging and published by . This book was released on 2010 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Reverse Mortgages and Interest Rate Risk written by Thomas P. Boehm and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We develop and apply a valuation model that quantifies the interest rate risk inherent in fixed rate reverse mortgages. Consistent with intuition, our results show that the interest rate risk of a reverse mortgage is greater than that of either a typical coupon bond or a regular mortgage. Somewhat surprisingly, we find that this difference in interest rate risk is extremely large. In fact, the interest rate risk of a reverse mortgage often is several orders of magnitudes greater than the interest rate risk of other fixed-income securities.
Download or read book Reverse Mortgage Pricing and Risk Analysis Allowing for Idiosyncratic House Price Risk and Longevity Risk written by Adam Wenqiang Shao and published by . This book was released on 2014 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: Reverse mortgages provide an alternative source of funding for retirement income and health care costs. The two main risks that reverse mortgage providers face are house price risk and longevity risk. Recent real estate literature has shown that the idiosyncratic component of house price risk is large. We analyse the combined impact of house price risk and longevity risk on the pricing and risk profile of reverse mortgage loans in a stochastic multi-period model. The model incorporates a new hybrid hedonic-repeat-sales pricing model for houses with specific characteristics, as well as a stochastic mortality model for mortality improvements along the cohort direction (the Willis-Sherris model). Our results show that pricing based on an aggregate house price index does not accurately assess the risks underwritten by reverse mortgage lenders, and that failing to take into account cohort trends in mortality improvements substantially underestimates the longevity risk involved in reverse mortgage loans.
Download or read book AARP Reverse Mortgages and Linked Securities written by Vishaal B. Bhuyan and published by John Wiley & Sons. This book was released on 2011-12-19 with total page 225 pages. Available in PDF, EPUB and Kindle. Book excerpt: AARP Digital Editions offer you practical tips, proven solutions, and expert guidance. Reverse Mortgages and Linked Securities is a contributed title comprising many of the leading minds in the Home Equity Conversion Mortgages (HECM) industry, including reverse mortgage lenders, institutional investors, underwriters, attorneys, and regulators. This book begins with a brief history of reverse mortgages, and quickly moves on to discuss how the industry has evolved-detailing the players in these markets as well as the process. It discusses the securitization of reverse mortgages and other linked securities and includes coverage of pricing techniques and risk mitigation. This reliable resource also takes the time to cover the current regulatory environment of the HECM market, which is constantly changing due to the current state of the real estate market. Highlights specific strategies that will allow institutional investors to benefit from the resurgence of reverse mortgages and linked securities One of the only guides to reverse mortgages and linked securities targeted towards institutional investors interested in securitized products If you want to make the most of reverse mortgages and linked securities, take the time to read this book.
Download or read book Risk Management and Payout Design of Reverse Mortgages written by Daniel Cho and published by . This book was released on 2013 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: We analyze the risk and profitability of reverse mortgages with lump-sum or income stream payments from the lender's perspective. Reverse mortgage cash flows and loan balances are modeled in a multi-period stochastic framework that allows for house price risk, interest rate risk and risk of delayed loan termination. A VAR model is used to simulate economic scenarios and to derive stochastic discount factors for pricing the no negative equity guarantee embedded in reverse mortgage contracts. Our results show that lump-sum reverse mortgages are more profitable and require less risk-based capital than income stream reverse mortgages, which explains why this product design dominates in most markets. The loan-to-value ratio, the borrower's age, mortality improvements and the lender's financing structure are shown to be important drivers of the profitability and riskiness of reverse mortgages, but changes in these parameters do not change the main conclusions.
Download or read book Reverse Mortgages written by Meghan Galloway and published by Nova Science Publishers. This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: A reverse mortgage is a special type of home loan for older homeowners that requires no monthly mortgage payments. Borrowers are still responsible for property taxes and homeowner's insurance. Reverse mortgages allow seniors to access the equity they have built up in their homes now, and defer payments of the loan until they die, sell, or move out of the home. The original purpose envisioned for reverse mortgages was to convert home equity into cash that borrowers could use to help meet expenses in retirement. Borrowers could choose between an income stream for everyday expenses, a line of credit for major expenses (such as home repairs and medical expenses), or a combination of the two. This book examines the changes that have taken place in the marketplace and in the consumers who use reverse mortgages, with a focus on consumer protection concerns.
Download or read book No Place Like Home written by Filippo Cavassini and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Reverse Mortgages written by United States Government Accountability Office and published by Createspace Independent Publishing Platform. This book was released on 2017-09-08 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Reverse mortgages-a type of loan against home equity available to seniors-are growing in popularity. A large majority of reverse mortgages are insured by the Department of Housing and Urban Development (HUD) under its Home Equity Conversion Mortgage (HECM) program. The Housing and Economic Recovery Act of 2008 (HERA) made several modifications to the HECM program, including changes in how origination fees are calculated and an increase in the loan limit. The Act directed GAO to examine (1) how these changes have affected lenders' plans to offer reverse mortgages, (2) how the changes will affect borrowers, and (3) actions HUD has taken to evaluate the financial performance of the HECM program. To address these objectives, GAO surveyed a representative sample of HECM lenders, analyzed loan-level HECM data, and reviewed HUD estimates and analysis of HECM program costs. GAO makes no recommendations in this report. HUD concurred with the
Download or read book Securitization of Longevity Risk in Reverse Mortgages written by Liang Wang and published by . This book was released on 2008 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: The reverse mortgage market has been expanding rapidly in developed economies in recent years. The onset of demographic transition places a rapidly rising number of households in an age window where reverse mortgages have potential appeal, and increasing prices for residential real estate over the last decade has further stimulated interest.Reverse mortgages involve various risks from the provider's perspective which may hinder the further development of these financial products. This paper addresses one method of transferring and financing the risks associated with these products through the form of securitization. Securitization is becoming a popular and attractive alternative form of risk transfer of insurance liabilities. Here we demonstrate how to construct a securitization structure for reverse mortgages similar to the one applied in traditional insurance products. Specifically, we investigate the merits of developing survivor bonds and survivor swaps for reverse mortgage products. In the case of survivor bonds, for example, we are able to compute premiums, both analytically and numerically through simulations, and to examine how the longevity risk may be transferred to the financial investors. Our numerical calculations provide an indication of the economic benefits derived from developing survivor bonds to securitize the quot;longevity risk compoentquot; of reverse mortgage products. Moreover, some sensitivity analysis of these economic benefits indicates that these survivor bonds provide for a promising tool for investment diversification.
