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.
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.