Reverse Mortgages and Linked Securities: The Complete Guide to Risk, Pricing, and Regulation: 577

Over the past few years, seniors and Baby Boomers alike have lost tremendous value in their retirement plans and homes. In a post-credit crisis, pre-retirement era, however, boomers may not have enough time or sufficient capital to earn back the losses they have incurred in their equities and real estate portfolios in order to budget for coming increases in medical expenses or retirement costs. This will give rise to one of the greatest bull markets in history reverse equity transactions, such as reverse mortgages.

With contributors from among the foremost experts in their fields, Reverse Mortgages and Linked Securities offers institutional investors a practical framework for understanding the mechanics of the reverse mortgage transaction. The book begins with a brief history of reverse mortgages, while providing a road map of the industry today: who are the market participants (from lenders and investors to borrowers and underwriters) and what is the process? It then discusses the actuarial underwriting of reverse mortgages and other associated risks. The second section also discusses interest rate and housing price risks and offers up possible risk mitigation solutions. The book goes on to explain the tax treatment of reverse mortgage borrowers, lenders, and investors in reverse mortgage-backed securities, and concludes with a discussion of the ever-changing regulatory environment of the Home Equity Conversion Mortgage (HECM) market.

While there are many low-end, retail books on the subject of reverse mortgages, targeted to seniors who want to learn how to reverse their own mortgages, Reverse Mortgages and Linked Securities is one of the only books targeted to institutions and institutional investors interested in reverse mortgage securitization. It offers the critical information you need to compete successfully in this burgeoning field.

Over the past few years, seniors and Baby Boomers alike have lost tremendous value in their retirement plans and homes. In a post-credit crisis, pre-retirement era, however, boomers may not have enough time or sufficient capital to earn back the losses they have incurred in their equities and real estate portfolios in order to budget for coming increases in medical expenses or retirement costs. This will give rise to one of the greatest bull markets in history―reverse equity transactions, such as reverse mortgages.

With contributors from among the foremost experts in their fields, Reverse Mortgages and Linked Securities offers institutional investors a practical framework for understanding the mechanics of the reverse mortgage transaction. The book begins with a brief history of reverse mortgages, while providing a road map of the industry today: who are the market participants (from lenders and investors to borrowers and underwriters) and what is the process? It then discusses the actuarial underwriting of reverse mortgages and other associated risks. The second section also discusses interest rate and housing price risks and offers up possible risk mitigation solutions. The book goes on to explain the tax treatment of reverse mortgage borrowers, lenders, and investors in reverse mortgage-backed securities, and concludes with a discussion of the ever-changing regulatory environment of the Home Equity Conversion Mortgage (HECM) market.

While there are many low-end, retail books on the subject of reverse mortgages, targeted to seniors who want to learn how to reverse their own mortgages, Reverse Mortgages and Linked Securities is one of the only books targeted to institutions and institutional investors interested in reverse mortgage securitization. It offers the critical information you need to compete successfully in this burgeoning field.