JOURNAL ARTICLE

Re-Evaluating the Major Factors in the Low Origination Rate of the Reverse Mortgage Market.

  • Published In: Review of Pacific Basin Financial Markets & Policies, 2023, v. 26, n. 2. P. 1 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Liu, Wei-Han 3 of 3

Abstract

We reinvestigate the major factors in the low origination rate of home equity conversion mortgages (HECMs) in the United States from 2010 to 2017. We use panel data analysis to consider the variation in time and region and investigate the main determinants of the HECM origination rate. We examine five categories of variables: demographics, home equity, home debt level, retirement income, and taxes. We first filter out key variables and then consider the interactions among these factors. The empirical outcomes confirm the significance of including interactions and provide detailed observations to resolve several disputed issues and make policy recommendations, such as debt priority of mortgage and credit card, applying HECM as a personal or household decision, and the dominance of property tax over inheritance tax. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:Review of Pacific Basin Financial Markets & Policies. 2023/06, Vol. 26, Issue 2, p1
  • Document Type:Article
  • Subject Area:Social Sciences and Humanities
  • Publication Date:2023
  • ISSN:0219-0915
  • DOI:10.1142/S0219091523500145
  • Accession Number:164628994
  • Copyright Statement:Copyright of Review of Pacific Basin Financial Markets & Policies is the property of World Scientific Publishing Company and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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