EXAMINING THE FACTORS THAT LEAD TO THE DELAYED GROWTH OF REVERSE MORTGAGES

Sachin Khare; M.A. Khan

doi:10.29121/shodhkosh.v5.i6.2024.3318

Authors

Sachin Khare Research Scholar, N.L. Dalmia Institute of Management Studies & Research, (NLDIMSR), Mumbai University
Dr. M.A. Khan Professor & Director, NLDIMSR

DOI:

https://doi.org/10.29121/shodhkosh.v5.i6.2024.3318

Keywords:

Borrower, Severity, Risk, Reverse Mortgages, Lenders, Interest Rate Risk, Bequest, Senior Citizens

Abstract [English]

Those who are 60 years of age or older are eligible for a Reverse Mortgage. Homeowners may access the equity in their fixed assets and put it to use in their golden years using this loan product. By using a Reverse Mortgage, homeowners are able to enjoy the benefits of their property throughout their lifetime without having to return any kind of debt. The worth of their residence is intertwined with their network, and it provides the income necessary for subsistence.
Aims and Objectives: From the viewpoints of the borrowers (the elderly) and the lenders (the banks and other financial organizations), this research aims to identify the variables that influence the efficacy or lack thereof of reverse mortgages.
Methodology: Books, journals, previous publications, and researcher interviews will make up the bulk of the secondary data set for this qualitative study.
Findings and Discussion: Examining the maintenance risk that borrowers face in Reverse Mortgages from both the lender's and the borrower's point of view is the primary objective of the present research. Researchers were able to successfully categorize and identify variation from both an internal and an external viewpoint in the research.
Conclusion: In order to reach a successful conclusion, it takes into account the Reverse Mortgage and the numerous factors that impact both borrowers and lenders when taking out a home loan, all while effectively managing their risk. The findings are based on literature and academic reviews.

References

Choi, K., Lim, B., & Park, J. (2020). Evaluation of the Reverse Mortgage Option in Korea: A Long Straddle Perspective. International Journal of Financial Studies. DOI: https://doi.org/10.3390/ijfs8030055

Buzałek, P., & Czechowska, I.D. (2020). Effect of capital conversion in the form of a reverse mortgage on benefits for senior citizens in major cities of Poland. Finanse i Prawo Finansowe. DOI: https://doi.org/10.18778/2391-6478.S.2021.03

Ashok, S. (2020). EXPLORING THE DETERMINANTS OF REVERSE MORTGAGE PURCHASE DECISION: EVIDENCE FROM INDIA. The Journal of Internet Banking and Commerce, 25, 1-33.

Ashok, S., & Dhingra, D. (2020). Reverse Mortgage: A Financial Planning Tool for the Retirees— Case Study Approach in India. South Asian Journal of Business and Management Cases, 9, 375 - 386. DOI: https://doi.org/10.1177/2277977920958668

Kuzmina, E., & Ianin, A. (2020). Modelling the profitability of reverse mortgage loans with life-long annuity payments. E3S Web of Conferences. DOI: https://doi.org/10.1051/e3sconf/202020305020

GopikaS, S., & Amutha, K.P. (2020). An Empirical Study on Customers Perception and Preference of Reverse Mortgage Loans with Special Reference to Palakkad District - IRE Journals.

Kannan, D., & Ma, L. (2020). Valuation of Reverse Mortgage. DOI: https://doi.org/10.1007/978-981-15-5951-8_22

Gorkhe, M. (2020). Study On Reverse Mortgage Loan In India.

Dai, K. (2020). On the reverse mortgage in China: An Empirical Analysis Based on risk neutral pricing method. IOP Conference Series: Materials Science and Engineering, 768. DOI: https://doi.org/10.1088/1757-899X/768/5/052010

Magurean, M. (2020). Reverse mortgage: a neural network approach for pricing and risk assessment.

Bo, F., & Dengxin, D. (2020). Analysis of the Reasons for the Slow Progress of Reverse Mortgage. Proceedings of the 2020 4th International Conference on Management Engineering, Software Engineering and Service Sciences. DOI: https://doi.org/10.1145/3380625.3380636

Lin, C., Chen, K., Wang, W., Lin, Y., & Xie, M. (2023). Mass Media Member’s Discussion in the Data Science by Advanced Analytics for Reverse Mortgage*. 2023 4th Information Communication Technologies Conference (ICTC), 348-352. DOI: https://doi.org/10.1109/ICTC57116.2023.10154666

Shi, K. (2023). Study on Comparative Law of Housing Reverse Mortgage Loan System. Journal of Innovation and Social Science Research.

Chun, H. (2023). A Study on the Sufficiency of Old-age Measures for Reverse Mortgage Users. The Korean Data Analysis Society. DOI: https://doi.org/10.37727/jkdas.2023.25.4.1285

Boj, E., Claramunt, M.M., & Varea, X. (2022). REVERSE MORTGAGE AND FINANCIAL SUSTAINABILITY. Technological and Economic Development of Economy. DOI: https://doi.org/10.3846/tede.2022.16617

Blevins, J.R., Shi, W., Haurin, D.R., & Moulton, S. (2020). A DYNAMIC DISCRETE CHOICE MODEL OF REVERSE MORTGAGE BORROWER BEHAVIOR. International Economic Review, 61, 1437-1477. DOI: https://doi.org/10.1111/iere.12470

Martinez-Lacoba, R., Pardo-García, I., & Escribano-Sotos, F. (2020). The reverse mortgage: a tool for funding long-term care and increasing public housing supply in Spain. Journal of Housing and the Built Environment, 36, 367 - 391. DOI: https://doi.org/10.1007/s10901-020-09794-w

Fuente, I.D., Navarro, E., & Serna, G. (2020). Reverse Mortgage Risks. Time Evolution of VaR in Lump-Sum Solutions. Mathematics. DOI: https://doi.org/10.3390/math8112043

Yang, J., Min, D., & Kim, J. (2020). The Use of Big Data and Its Effects in a Diffusion Forecasting Model for Korean Reverse Mortgage Subscribers. Sustainability, 12, 979. DOI: https://doi.org/10.3390/su12030979

Zhang, Y. (2020). Influence Factors of Attitude of Offspring on the Demand for Housing Reverse Mortgage Endowment Insurance in China.