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EPISODE #810
Here’s how reverse mortgages work in India
[All Maa]
While reverse mortgages have been in India for nearly 15-years, the program, not unlike the United States, has not gained widespread acceptance and faces similair misconceptions.
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2 Comments
In the last year, our industry has been both victim and perpetrator of a kind of “irrational exuberance” (a term coined by Alan Greenspan which I am borrowing) when it comes to when and by how much the Fed would cut interest rates).
As to predicting such reductions, I will leave that to the more intuitive among us.
It is far too early to declare that inflation is under control in a 2% range The mission is NOT accomplished. Indeed the Fed should wait to reduce interest rates until June 2024 but only if inflation has not started to rise unreasonably with the possible exception of using interest rate reductions to head off a developing recession in the economy sut only if such reductions will help the particular problem.
The fluctuations in the 10 year CMT have more to do with investor anticipation and reactions than actual Fed decisions.
Unlike India, our primary reverse mortgage is a government insured product so rather than looking to lendes to pay property charges, US potential borrowers have mistakenly looked to Uncle Sam to pay them but of course prospects here had the help of ethically challenged HECM marketers who called mortgage proceeds, government benefits.