As a reverse mortgage program is being developed in Taipei, Government officials and the private industry are debating how much of a roll each should play in the product.
According to an article from the Taipei Times, there are concerns that its reverse mortgage product would offer retirement security to senior citizens who are relatively wealthy but the majority of financially disadvantaged elderly will likely be left out, pundits said.
“Reverse mortgages would provide an alternative for some elderly people who have little cash in hand to support themselves,” Chuang Meng-han, an associate professor of economics at Tamkang University, told the Taipei Times by telephone.
Most likely, senior citizens with valuable properties in metropolitan areas will benefit from the policy, he said.
According to the Taipei Times, the Bankers Association of the ROC says the government should learn from the US Home Equity Conversion Mortgage (HECM), which is the only reverse mortgage program insured by a federal government.
The association official said he did not expect private insurers or banks would take part in the program in the first few years, when adjustments are usually made.
The private sector, however, has welcomed the program. To read more about the private sectors interest click the link below.
