More Governments Warming Up to Reverse Mortgages

image Despite the fact that reverse mortgages have failed to take off in places like India, it isn’t stopping other countries from looking at the product. 

Taiwan is considering offering a government plan to aid seniors by allowing them to convert their home equity into cash after the chairwoman of the Bank of Taiwant (BOT) offered tentative support said the China Post

Sean Chen, chairman of the Cabinet-level Financial Supervisory Commission (FSC), said that the FSC will push for a governmental reverse mortgage mechanism to cushion the nation’s growing elderly population.

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According to the article, the FSC has been considering reverse mortgages for years but determined that such a program was not viable for banks to administer alone.  A new reverse mortgage program will require cooperation of various government departments to work.

BOT Chairwoman Susan Chang, said that banks in Taiwan will support the government’s plan if proven “viable”. Taiwanese banks will advise the government on the reverse mortgage plan if requested, Chang said.

Banks support ‘viable’ mortgage plan

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  • What's love got to do with it?

    Whatever Taiwan decides to do, this points out the aging around the world have financial needs that reverse mortgages help to resolve.

  • This goes to show you that even China knows how valuable a Reverse mortgage is. They must look at us and laugh. They have to be saying, “These Americans, they are destroying a program that could be their salvation for their growing senior market”. We bite ourselves in the Tail over and over again. The turmoil that has been created over the last 9 months in the reverse mortgage industry is a crime.

    I think back to the Vietnam era, remember how are troops were treated when they came home, people blamed them when all they were doing was putting their life's on the line for the people back home and for their freedom. The people back home took the dignity away from our soldiers. That should never have happened but it did. Many will never forget that for the rest of their life's.

    Are we starting to treat our seniors in a way that we are causing them to lose their dignity. They are losing their dignity because they are losing their homes, their retirement funds, charging up debt to survive, I could go on and on.

    At least a reverse mortgage has been giving our seniors their dignity back. Over the past nine months a reverse mortgage has become very difficult for many seniors to obtain and qualify for. You can't blame it all on dropping home values. The changes we have seen has lowered the amount of entitlement a senior can get by a tremendous amount

    We all know the way reverse mortgages were priced had to be changed. However, I feel their was a different way of doing it but it was done the way it was for reasons other than the way it was presented to the American people. The same goes for the reduction in the principle limit. There is no excuse for giving the industry a seven day notice. Many seniors were hurt by the short notice, many will be going into foreclosure. Maybe China will make us think a bit more before we attack the industry again?

    John A. Smaldone

  • This goes to show you that even China knows how valuable a Reverse mortgage is. They must look at us and laugh. They have to be saying, “These Americans, they are destroying a program that could be their salvation for their growing senior market”. We bite ourselves in the Tail over and over again. The turmoil that has been created over the last 9 months in the reverse mortgage industry is a crime. rnrnI think back to the Vietnam era, remember how are troops were treated when they came home, people blamed them when all they were doing was putting their life’s on the line for the people back home and for their freedom. The people back home took the dignity away from our soldiers. That should never have happened but it did. Many will never forget that for the rest of their life’s.rnrnAre we starting to treat our seniors in a way that we are causing them to lose their dignity. They are losing their dignity because they are losing their homes, their retirement funds, charging up debt to survive, I could go on and on.rnrnAt least a reverse mortgage has been giving our seniors their dignity back. Over the past nine months a reverse mortgage has become very difficult for many seniors to obtain and qualify for. You can’t blame it all on dropping home values. The changes we have seen has lowered the amount of entitlement a senior can get by a tremendous amountrnrnWe all know the way reverse mortgages were priced had to be changed. However, I feel their was a different way of doing it but it was done the way it was for reasons other than the way it was presented to the American people. The same goes for the reduction in the principle limit. There is no excuse for giving the industry a seven day notice. Many seniors were hurt by the short notice, many will be going into foreclosure. Maybe China will make us think a bit more before we attack the industry again?rnrnJohn A. Smaldonern

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