The World Bank Group Examines RM Growth


Moral hazard, adverse risk selection, and market share examined

The World Bank Group examined the global reverse mortgage marketplace in it’s January research paper. While the loan remains characterized as a ‘last resort’ their critical analysis of supply-side challenges, adverse selection, and moral hazards are revealing. Despite these challenges the World Bank Group sees value in the loan when considering the reverse mortgage’s ability to help cushion against financial shocks and smooth consumption of accumulated assets. “The ways that reverse mortgages can benefit the elderly population is impressive”, says the report.

Read the World Bank Group research paper

Leave a Comment

HECMWorld.com uses cookies to improve user-experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Cookies View Policy

DON'T MISS OUT!
Subscribe To Our Newsletter
Be the first to get latest Reverse Industry updates and exclusive HECMWorld.com content straight to your email inbox.
Your information will never be shared.
close-link