{"product_id":"reverse-mortgages-and-linked-securities-isbn-9780470584620","title":"Reverse Mortgages and Linked Securities","description":"\u003cp\u003eAn institutional investor's guide to the burgeoning field of reverse mortgage securitization\u003c\/p\u003e \u003cp\u003e\u003ci\u003eReverse Mortgages and Linked Securities\u003c\/i\u003e is a contributed title comprising many of the leading minds in the Home Equity Conversion Mortgages (HECM) industry, including reverse mortgage lenders, institutional investors, underwriters, attorneys, and regulators.\u003c\/p\u003e \u003cp\u003eThis book begins with a brief history of reverse mortgages, and quickly moves on to discuss how the industry has evolved-detailing the players in these markets as well as the process. It discusses the securitization of reverse mortgages and other linked securities and includes coverage of pricing techniques and risk mitigation. This reliable resource also takes the time to cover the current regulatory environment of the HECM market, which is constantly changing due to the current state of the real estate market.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eHighlights specific strategies that will allow institutional investors to benefit from the resurgence of reverse mortgages and linked securities\u003c\/li\u003e \u003cli\u003eOne of the only guides to reverse mortgages and linked securities targeted towards institutional investors interested in securitized products\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eIf you want to make the most of reverse mortgages and linked securities, take the time to read this book.\u003c\/p\u003e \u003cp\u003ePreface xi\u003c\/p\u003e \u003cp\u003eAcknowledgments xvii\u003c\/p\u003e \u003cp\u003eList of Contributors xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart One\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eReverse Mortgage Basics 1\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eReverse Mortgage Primer 3\u003c\/p\u003e \u003cp\u003eLoan Disbursements 4\u003c\/p\u003e \u003cp\u003eOverview of Lender Challenges 6\u003c\/p\u003e \u003cp\u003eSummary 6\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe History of Reverse Mortgages: An Insider’s View 8\u003c\/p\u003e \u003cp\u003eFormative Years 8\u003c\/p\u003e \u003cp\u003ePrivate Programs 9\u003c\/p\u003e \u003cp\u003eFirst Lifetime Reverse Mortgages 10\u003c\/p\u003e \u003cp\u003eFannie Mae Stakes a Claim to the Marketplace 12\u003c\/p\u003e \u003cp\u003eRoots of the Securitization of Reverse Mortgages 13\u003c\/p\u003e \u003cp\u003eSummary 15\u003c\/p\u003e \u003cp\u003eNotes 16\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHECM Explained: Reverse Mortgages Originated via the Home Equity Conversion Mortgage (HECM) Program 17\u003c\/p\u003e \u003cp\u003eLegislative History and Program Fundamentals 18\u003c\/p\u003e \u003cp\u003eDisbursing Funds and Calculating Loans and Interest 19\u003c\/p\u003e \u003cp\u003eChanges to the Program Following the 2008 Act 21\u003c\/p\u003e \u003cp\u003eConsumer-Focused Elements of the Program 24\u003c\/p\u003e \u003cp\u003eSummary 26\u003c\/p\u003e \u003cp\u003eNotes 28\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Two\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUnderwriting and Risk Analysis 33\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUnderwriting Reverse Mortgages 35\u003c\/p\u003e \u003cp\u003eUnderwriting Life Expectancy 36\u003c\/p\u003e \u003cp\u003eLife Settlement versus Reverse Mortgage Underwriting 37\u003c\/p\u003e \u003cp\u003eSimplicity of the Current Reverse Mortgage Underwriting Process 37\u003c\/p\u003e \u003cp\u003eWhy Does Underwriting Matter? 38\u003c\/p\u003e \u003cp\u003eProposed Elements of Reverse Mortgage Underwriting 38\u003c\/p\u003e \u003cp\u003eSummary 42\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRisk Mitigation from Existing and Proposed Financial Products 43\u003c\/p\u003e \u003cp\u003eReverse Mortgage Risks 46\u003c\/p\u003e \u003cp\u003eAgency versus Nonconforming Loans 48\u003c\/p\u003e \u003cp\u003eSummary 53\u003c\/p\u003e \u003cp\u003eNotes 54\u003c\/p\u003e \u003cp\u003eChapter 6\u003c\/p\u003e \u003cp\u003eLongevity Risk and Fair Value Accounting 55\u003c\/p\u003e \u003cp\u003eLongevity Cost Calculator TM as a Loan Underwriting and Pricing Tool 61\u003c\/p\u003e \u003cp\u003eReverse Mortgage Loan Pricing Using the Longevity Cost Calculator 74\u003c\/p\u003e \u003cp\u003eExisting Accounting Framework 75\u003c\/p\u003e \u003cp\u003eSuggested GAAP-Compliant Methodology to Standardize Life Settlement Underwriting 77\u003c\/p\u003e \u003cp\u003eSummary 78\u003c\/p\u003e \u003cp\u003eNotes 79\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRisk Mitigation: Available Hedges and Products in Development for Risk Transfer 81\u003c\/p\u003e \u003cp\u003eHedging Crossover Components in the Capital Markets 82\u003c\/p\u003e \u003cp\u003eInsurance Solutions 86\u003c\/p\u003e \u003cp\u003eSummary 90\u003c\/p\u003e \u003cp\u003eNote 90\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCriteria for Rating U.K. Reverse Mortgage–Backed Securities 91\u003c\/p\u003e \u003cp\u003eOverview of Reverse (Equity Release) Mortgages 91\u003c\/p\u003e \u003cp\u003eReverse Mortgage-Backed Securitization 92\u003c\/p\u003e \u003cp\u003eMortality Assumptions 93\u003c\/p\u003e \u003cp\u003ePrepayment Assumptions 94\u003c\/p\u003e \u003cp\u003eHouse Price Increase Assumptions 95\u003c\/p\u003e \u003cp\u003eCosts and Sale Period 97\u003c\/p\u003e \u003cp\u003eSummary 97\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Three\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTax Treatment 99\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eU.S. Federal Income Tax Aspects of Reverse Mortgages 101\u003c\/p\u003e \u003cp\u003eWhat Is a Reverse Mortgage? 102\u003c\/p\u003e \u003cp\u003eDeductibility of Interest Payments on Reverse Mortgages 102\u003c\/p\u003e \u003cp\u003eSecuritization of Reverse Mortgage Loans via REMIC Structures 103\u003c\/p\u003e \u003cp\u003ePractical Observations Regarding Investment Reverse Mortgage REMIC Securities 105\u003c\/p\u003e \u003cp\u003eSummary 106\u003c\/p\u003e \u003cp\u003eNotes 107\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Four\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eReverse Mortgages in Context 109\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUnlocking Housing Equity in Japan 111\u003c\/p\u003e \u003cp\u003eImplementation in the Japanese Context 112\u003c\/p\u003e \u003cp\u003eFeasibility of Reverse Mortgages in Japan 117\u003c\/p\u003e \u003cp\u003eSummary 121\u003c\/p\u003e \u003cp\u003eNotes 124\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Secondary Market in Home Equity Conversion Mortgages 127\u003c\/p\u003e \u003cp\u003eThe Reverse Mortgage to Liquidate Home Equity 127\u003c\/p\u003e \u003cp\u003eHECM: A Financial Innovation 130\u003c\/p\u003e \u003cp\u003eCash Flows, Risk, and Uncertainty 131\u003c\/p\u003e \u003cp\u003eThe Secondary Market for HECM 132\u003c\/p\u003e \u003cp\u003eHECM Securitization 134\u003c\/p\u003e \u003cp\u003eLongevity Risk Embedded in HECM 137\u003c\/p\u003e \u003cp\u003eThe Constraints of the Underlying Asset 140\u003c\/p\u003e \u003cp\u003eConcluding Remarks 145\u003c\/p\u003e \u003cp\u003eSummary 146\u003c\/p\u003e \u003cp\u003eAppendix a Housing Wealth Among the Elderly 149\u003c\/p\u003e \u003cp\u003eWealth in Housing 149\u003c\/p\u003e \u003cp\u003eOwner-Occupancy Rates 152\u003c\/p\u003e \u003cp\u003eHow Risky Is Housing Wealth? 153\u003c\/p\u003e \u003cp\u003eDo the Elderly Decumulate Their Housing Wealth? 155\u003c\/p\u003e \u003cp\u003eNotes 159\u003c\/p\u003e \u003cp\u003eAppendix B Reverse Mortgage Analytics 161\u003c\/p\u003e \u003cp\u003eDetermining the Payout Values: Practical Considerations 162\u003c\/p\u003e \u003cp\u003eComputing Payout Values: An Example 163\u003c\/p\u003e \u003cp\u003eNotes 165\u003c\/p\u003e \u003cp\u003eGlossary 167\u003c\/p\u003e \u003cp\u003eAbout the Author 171\u003c\/p\u003e \u003cp\u003eAbout the Contributors 173\u003c\/p\u003e \u003cp\u003eIndex 181\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eVISHAAL B. BHUYAN\u003c\/b\u003e has been involved in the “life markets” for over five years and has focused on analyzing and investing in life settlements, reverse mortgages, and other linked assets. He has advised a number of large investment funds on the longevity and mortality risk asset class and has been invited to speak at various investment and industry-specific conferences across the United States, Europe, and Asia. Bhuyan is also the editor and coauthor of \u003ci\u003eLife Markets: Trading Mortality and Longevity Risk with Life Settlements and Linked Securities \u003c\/i\u003e(Wiley) and will be releasing \u003ci\u003eThe Esoteric Investor\u003c\/i\u003e (FT Press) in 2011.   \u003c\/p\u003e\u003cp\u003eOver the past few years, seniors and Baby Boomers alike have lost tremendous value in their retirement plans and homes. In a post-credit crisis, pre-retirement era, however, boomers may not have enough time or sufficient capital to earn back the losses they have incurred in their equities and real estate portfolios in order to budget for coming increases in medical expenses or retirement costs. This will give rise to one of the greatest bull markets in history—reverse equity transactions, such as reverse mortgages. \u003c\/p\u003e\u003cp\u003eWith contributors from among the foremost experts in their fields, \u003ci\u003eReverse Mortgages and Linked Securities\u003c\/i\u003e offers institutional investors a practical framework for understanding the mechanics of the reverse mortgage transaction. The book begins with a brief history of reverse mortgages, while providing a road map of the industry today: who are the market participants (from lenders and investors to borrowers and underwriters) and what is the process? It then discusses the actuarial underwriting of reverse mortgages and other associated risks. The second section also discusses interest rate and housing price risks and offers up possible risk mitigation solutions. The book goes on to explain the tax treatment of reverse mortgage borrowers, lenders, and investors in reverse mortgage-backed securities, and concludes with a discussion of the ever-changing regulatory environment of the Home Equity Conversion Mortgage (HECM) market. \u003c\/p\u003e\u003cp\u003eWhile there are many low-end, retail books on the subject of reverse mortgages, targeted to seniors who want to learn how to reverse their own mortgages, \u003ci\u003eReverse Mortgages and Linked Securities\u003c\/i\u003e is one of the only books targeted to institutions and institutional investors interested in reverse mortgage securitization. It offers the critical information you need to compete successfully in this burgeoning field.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989959196901,"sku":"NP9780470584620","price":90.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470584620.jpg?v=1761786032","url":"https:\/\/k12savings.com\/es\/products\/reverse-mortgages-and-linked-securities-isbn-9780470584620","provider":"K12savings","version":"1.0","type":"link"}