Reducing default rates of reverse mortgages

Moulton, Stephanie, Donald Haurin, and Wei Shi. “Reducing default rates of reverse mortgages”. Issue in Brief 16-11, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, July 2016. http://hdl.handle.net/2345/bc-ir:106997.
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Abstract

The brief's key findings are: (1) In any loan program, a key objective is balancing the twin goals of high take-up rates and low default rates. (2) In 2013, the federal government announced new rules to curb default rates of reverse mortgages by limiting initial withdrawals and requiring underwriting. (3) To assess the effects of the new rules, this analysis uses a unique dataset linking borrower characteristics to their loan activity. (4) The results show that the new rules could reduce default rates by up to 50 percent, with only a small impact on take-up.

Title
Reducing default rates of reverse mortgages
Author
Moulton, Stephanie
Haurin, Donald
Shi, Wei
Center
Center for Retirement Research
Genre
report
Date Issued
July 2016
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
16-11
Persistent Link
http://hdl.handle.net/2345/bc-ir:106997
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing retirement

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