October 5, 2017 12:10 PM
Lazaro Vazquez discusses the rise of the reverse-mortgage market in the September 2017 issue of the Wolters Kluwer Banking & Financial Services Policy Report in an article titled “Reverse Mortgages, Aging Baby Boomers, and Too Big to Fail.”
Reverse mortgages allow homeowners to use the equity build-up in their homes to borrow money. This option is generally only available to homeowners who are at least 62 years old. Unlike regular mortgages, payments do not need to be made until the homeowner sells the home or passes away.
As the population of the U.S. gets older – namely the “Baby Boomers” – the more consumers there will be for reverse mortgages. This aging population, together with rising home values and increases in the cost of living, should lead to an increase in the demand for reverse-mortgage loans over the next few decades.
Lazaro I. Vazquez is an attorney in the Miami office of Shutts & Bowen, where he is a member of the Corporate Practice Group.