scholarly journals Anticipating a Reverse Mortgage Adoption in Croatia

2020 ◽  
Vol 15 (3) ◽  
pp. 132-151
Author(s):  
Kundid Novokmet Ana ◽  
Matković Martina
Keyword(s):  
Elderly Population ◽  
Home Equity ◽  
Reverse Mortgage ◽  
Demographic Trends ◽  
Alternative Source ◽  
Ageing Society ◽  
Pension Income ◽  
Decent Life ◽  
Potential Demand ◽  
Insight Into

Abstract Reverse mortgage is an alternative source of financing of elderly population that usually has some homeownership, but insufficient income and savings to support desired or indispensable level of consumption. It is a financial innovation mostly provided by banks and finance companies to seniors, which enables a home equity conversion to liquidity without selling or leaving a property. In circumstances of ageing society, modest pension income, increasing long-care expenditures, limited access to loan market and high risk of poverty, a reverse mortgage product has a solid ground for implementation and adoption. Croatia is an ageing country with negative demographic trends, which accelerated in the last few years. Retired population which is “home rich and cash poor” is particularly vulnerable and at strike to sustain a decent life. Therefore, we raised a question concerning the justification of the reverse mortgage introduction in Croatia. After giving an insight into some contextual factors, an estimation of the potential demand for reverse mortgage service in Croatia was made by carrying out an exploratory – pilot study with around 120 questionnaire respondents. We found out that there is a poor knowledge about the reverse mortgage among Croatian financial consumers (i.e. only 24% of respondents are familiar with the reverse mortgage term), as well as the lack of demand for this home equity extraction instrument. Namely, almost 67% of respondents would not accept a reverse mortgage instrument regardless of the circumstances, primarily due to socio-cultural reasons.

scholarly journals The Covid-19 Effect on Security Mortgage Valuation

2021 ◽  
Vol 25 (1) ◽  
pp. 13-26
Author(s):  
Giovanna Di Lorenzo ◽  
◽  
Massimiliano Politano ◽  
Keyword(s):  
Interest Rates ◽  
House Prices ◽  
Gompertz Model ◽  
Mortgage Market ◽  
Elderly Persons ◽  
Home Equity ◽  
Reverse Mortgage ◽  
Mortgage Loans ◽  
Alternative Source ◽  
Cir Process

The reverse mortgage market has been expanding rapidly in developed economies in recent years. Reverse mortgages provide an alternative source of funding for retirement income and health care costs. We often hear the phrase “house rich and cash poor” to refer the increasing number of elderly persons who hold a substantial proportion of their assets in home equity. Reverse mortgage contracts involve a range of risks from the insurer’s perspective. When the outstanding balance exceeds the housing value before the loan is settled, the insurer suffers an exposure to crossover risk induced by three risk factors: interest rates, house prices, and mortality rates. In this context, Covid-19 has occurred and the insurer is faced with this additional source of risk. We analyse the combined impact of these risks on the pricing and the risk profile of reverse mortgage loans. We consider a CIR process for the evolution of the interest rate, a Black & Scholes model for the dynamics of house prices and the Gompertz model for the trend in mortality Our results show that the decrease in the mortality curve due to Covid exposes the insurer to higher risks once the shock is reabsorbed. The risk is higher the higher the age of entry. Only a significant reduction of the shock adjustment coefficient will return the situation to normality.

scholarly journals Asset-rich and cash-poor: which older adults value reverse mortgages?

2021 ◽  
pp. 1-18
Author(s):  
Joelle H. Fong ◽  
Olivia S. Mitchell ◽  
Benedict S. K. Koh
Keyword(s):  
Financial Literacy ◽  
Home Ownership ◽  
Home Equity ◽  
Reverse Mortgage ◽  
Targeted Interventions ◽  
Home Owner ◽  
Interest Level ◽  
Potential Demand ◽  
Reverse Mortgages ◽  
Nationally Representative

Abstract Home equity represents a substantial share of retirement wealth for many older persons, particularly in Asia where national housing policies have encouraged home-ownership. This paper explored the potential for reverse mortgages to help ‘asset-rich and cash-poor’ older Singaporeans unlock their home equity while ageing in place. The empirical analysis was based on a nationally representative survey of home-owners age 50+ in the 2018 Singapore Life Panel (N = 6,258). Our analyses showed that the average older home-owner holds some 60 per cent of total net wealth in housing equity, suggestive of high demand potential for reverse mortgage products. Nevertheless, actual interest in such products was much below potential demand. Only one in four older home-owners indicated interest in commercial reverse mortgages if these were to become available; a larger majority had never heard of the financial product. Interest in reverse mortgages was positively associated with product awareness and self-rated product understanding. This implies that a critical step towards building consumer interest would be to enhance awareness of such products and simplify related contract terms. Having a mortgage, fewer children, financial literacy and preparedness for retirement were also positively associated with interest level. These results have implications for targeted interventions to enhance consumer awareness and spur interest in reverse mortgages, especially in ageing societies where older people have built up substantial equity through the housing market over time.

A Hybrid Equity Release Plan for Retirement Financing

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Koon-Shing Kwong ◽  
Yiu-Kuen Tse ◽  
Junxing Chay
Keyword(s):  
Property Value ◽  
Front Part ◽  
Home Equity ◽  
Reverse Mortgage ◽  
Home Owner ◽  
Cash Payment ◽  
The Government

AbstractThere are two main equity release plans for retirement financing: reverse mortgage plan and home reversion plan. Both plans entitle the homeowners not only to release cash from their properties but also to allow them living there for life. In the lease buyback scheme (LBS) recently introduced in Singapore, the home owner sells the tail-end of the property lease to the government in exchange for a cash payment upfront. Unlike the two main equity release plans, the LBS only allows the owner to stay in the property for the front part of the lease but not for life. In this paper, we propose a hybrid home equity release plan that incorporates features of the home reversion plan and the LBS. We provide an actuarial framework to analyze the pricing of the hybrid plan, as well as the LBS and home reversion plan. Some numerical illustrations are presented to show the actuarial values of the plan under different choices of plan parameters, such as the lease period and the portion of property value sold. The hybrid plan provides enhanced flexibility to plan takers to meet their retirement needs.

Consequences of Gender Differentials in Life Expectancy for Black and Hispanic Americans

1989 ◽  
Vol 29 (2) ◽  
pp. 95-102 ◽  
Author(s):  
Kyriakos S. Markides
Keyword(s):  
General Population ◽  
Life Expectancy ◽  
Elderly Population ◽  
Hispanic Americans ◽  
Elderly Women ◽  
Intergenerational Relationships ◽  
The Elderly ◽  
Minority Women ◽  
Demographic Trends ◽  
Gender Differentials

Increased survival by blacks and Hispanics is causing a widening of the sex imbalance of the elderly population much like we have observed in the general population. These demographic trends point toward greater widowhood among minority women and continuing high rates of poverty. In addition, we can expect increased rates of disability in minority elderly women, increased dependency, worsening intergenerational relationships, and higher rates of institutionalization.

scholarly journals Ageing Society and SARS-CoV-2 Mortality: Does the Healthcare Absorptive Capacity Matter?

2020 ◽  
Vol 13 (11) ◽  
pp. 277
Author(s):  
Mohammad Reza Farzanegan
Keyword(s):  
Health Care ◽  
Absorptive Capacity ◽  
Elderly Population ◽  
The Elderly ◽  
Ageing Society

This study examines the effect of the elderly population on SARS-CoV-2 Disease (COVID-19) mortality for a sample of 146 countries. It shows that the elderly population is robustly associated with higher COVID-19 mortality. This effect, however, decreases significantly in countries with higher health care absorptive capacity. The results are robust to control for a set of economic, institutional and regional variables.

Possibility of introducing reverse mortgage product in Malaysia

2018 ◽  
Vol 10 (3) ◽  
pp. 265-284
Author(s):  
Mohammed Ishaq Mohammed ◽  
Noralfishah Sulaiman
Keyword(s):  
Old Age ◽  
Sampling Strategy ◽  
The Elderly ◽  
High Income ◽  
Mortgage Market ◽  
Elderly Persons ◽  
Vision 2020 ◽  
Reverse Mortgage ◽  
Alternative Source ◽  
Content Type

Purpose The year 2020 heralds a landmark in Malaysia’s demographic and economic landscape, as the country is expected to become an ageing country, as well as aspiring of becoming a high-income country. The elderly persons are, however, reported to be vulnerable to the risk of financial insecurity in old age, which if not addressed can affect the country’s effort of accomplishing the Vision 2020 goal of becoming a high-income nation. Therefore, this paper aims to explore the factors that are capable of affecting the development of reverse mortgage market in Malaysia from the perspective of the financial service professionals. Design/methodology/approach The study is a qualitative design that involves the use of semi-structured questionnaire as data collection strategy. A total number of nine participants were selected for the interview using critical case sample scheme based on purposive sampling strategy. Findings The findings reveal that various economic, socio-demographic, behavioural and political/institutional factors would impose varying degrees of influence on reverse mortgage market in Malaysia. Originality/value The study is expected to spur discussion among stakeholders on the practicability of using reverse mortgage as alternative source of old-age financing in Malaysia.

scholarly journals The aging lung mucosa: A proteomics study

2021 ◽  
Author(s):  
Andreu Garcia-Vilanova ◽  
Angelica M. Olmo-Fontanez ◽  
Juan I. Moliva ◽  
Anna Allue Guardia ◽  
Harjinder Singh ◽  
...  
Keyword(s):  
Regulatory Networks ◽  
Elderly Population ◽  
Respiratory Infections ◽  
The Elderly ◽  
Pulmonary Diseases ◽  
Lung Cells ◽  
Molecular Fingerprints ◽  
Elderly Individuals ◽  
Increased Risk ◽  
Insight Into

The elderly population is at increased risk of acute and chronic respiratory infections and other pulmonary diseases, and it is estimated that this population will double in the next 30 years. Biochemical changes in the lung alveolar mucosa and lung cells alter local immune response as we age, creating opportunities for invading pathogens to establish successful infections. Indeed, the lungs of the elderly are a pro-inflammatory, pro-oxidative, dysregulated environment but this environment has remained understudied. We performed a comprehensive, quantitative proteomic profile of the lung mucosa in the elderly, developing insight into the molecular fingerprints, pathways, and regulatory networks that characterize the lung in old age. We identified neutrophils in the lungs of elderly individuals as possible contributors to dysregulated lung tissue environment. This study establishes a baseline for future investigations to develop strategies to mitigate susceptibility to respiratory infections in the elderly.

scholarly journals THE DETERMINANTS OF REVERSE MORTGAGE CHOICE OF INDIAN ELDERLY HOMEOWNERS FOR SUSTAINABLE LIVELIHOOD: A LOGIT ANALYSIS

2019 ◽  
Vol 7 (4) ◽  
pp. 309-317
Author(s):  
Sarita Gupta ◽  
Dr. Sanjay Kumar
Keyword(s):  
Logistic Regression ◽  
Binary Logistic Regression ◽  
Later Life ◽  
Primary Data ◽  
Logit Analysis ◽  
Sustainable Livelihood ◽  
Housing Wealth ◽  
Home Equity ◽  
Reverse Mortgage ◽  
Insurance Cover

Purpose: In the regime of stretched old-age social security, federals and policymakers are presuming housing wealth as a means of sustainable livelihood for elderly homeowners.  The current study attempts to discover which demographic and financial factors are significant determinants of home equity liquidation through reverse mortgage of Indians in later life. Methodology: Binary logistic regression is applied to survey-based primary data of 410 elderly homeowners through SPSS software. Main Findings: Results of binary logistic regression model depicts that elderly considering an RM likely to be female, older, having poor health, childless or having girl child only, long life expectancy, resident of metro, employed, cash-constrained, not having any kind of insurance cover and those children are financially well are significantly more willing to opt for RM scheme. Implication: Study renders implications for Government and NHB, to provide refinancing facility to commercial banks so that home equity liquidation product like Reverse Mortgage can be able to fulfill income needs of greying India. Novelty/Originality: Length of research in European and western countries have been carried out to explore the attitude of older homeowner for housing wealth liquidation but Indian context, is largely untapped that how Indian older homeowner perceive their housing wealth and which factor influences them to delete it. In this way, current study attempts to bridge the research gap.

scholarly journals Deep Functional Profiling Facilitates the Evaluation of the Antibacterial Potential of the Antibiotic Amicoumacin

Antibiotics ◽  
2020 ◽  
Vol 9 (4) ◽  
pp. 157 ◽  
Author(s):  
Stanislav S. Terekhov ◽  
Anton S. Nazarov ◽  
Yuliana A. Mokrushina ◽  
Margarita N. Baranova ◽  
Nadezhda A. Potapova ◽  
...  
Keyword(s):  
Scale Production ◽  
Alternative Source ◽  
Lead Compounds ◽  
Functional Profiling ◽  
Microfluidic Assays ◽  
High Cytotoxicity ◽  
Mrsa Strains ◽  
Antibiotic Discovery ◽  
Essential Insight ◽  
Insight Into

The global spread of antibiotic resistance is forcing the scientific community to find new molecular strategies to counteract it. Deep functional profiling of microbiomes provides an alternative source for the discovery of novel antibiotic producers and probiotics. Recently, we implemented this ultrahigh-throughput screening approach for the isolation of Bacillus pumilus strains efficiently producing the ribosome-targeting antibiotic amicoumacin A (Ami). Proteomics and metabolomics revealed essential insight into the activation of Ami biosynthesis. Here, we applied omics to boost Ami biosynthesis, providing the optimized cultivation conditions for high-scale production of Ami. Ami displayed a pronounced activity against Lactobacillales and Staphylococcaceae, including methicillin-resistant Staphylococcus aureus (MRSA) strains, which was determined using both classical and massive single-cell microfluidic assays. However, the practical application of Ami is limited by its high cytotoxicity and particularly low stability. The former is associated with its self-lactonization, serving as an improvised intermediate state of Ami hydrolysis. This intramolecular reaction decreases Ami half-life at physiological conditions to less than 2 h, which is unprecedented for a terminal amide. While we speculate that the instability of Ami is essential for Bacillus ecology, we believe that its stable analogs represent attractive lead compounds both for antibiotic discovery and for anticancer drug development.

A Semi-Markov Multiple State Model for Reverse Mortgage Terminations

2012 ◽  
Vol 6 (2) ◽  
pp. 235-257 ◽  
Author(s):  
Min Ji ◽  
Mary Hardy ◽  
Johnny Siu-Hang Li
Keyword(s):  
Care Facility ◽  
State Model ◽  
Home Equity ◽  
Reverse Mortgage ◽  
Term Care ◽  
Long Term Care Facility ◽  
Health Related ◽  
The Usa ◽  
Multiple State ◽  
Multiple State Model

AbstractReverse mortgages provide a mechanism for seniors to release the equity that has been built up in their home. At termination, the mortgagors are usually guaranteed to owe no more than the value of their property. The value of the reverse mortgage guarantee is heavily dependent on the maturity or termination date, which is uncertain. In this paper, we model reverse mortgage terminations using a semi-Markov multiple state model which incorporates three different modes of exit: death, entrance into a long-term care facility, and voluntary prepayment. We apply the proposed model specifically to develop the valuation formulas for roll-up mortgages in the UK and Home Equity Conversion Mortgages (HECMs) in the USA. We examine the significance of each mode of termination by valuing the contracts allowing progressively for each mode. On the basis of our model and assumptions, we find that both health related terminations and voluntary (non-health related) terminations significantly impact the contract value. In addition we analyze the premium structure for US reverse mortgage insurance, and demonstrate that premiums appear to be too high for some borrowers, and substantial cross-subsidies may result.

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