REVERSE MORTGAGE LOANS

DR. PRADEEP KUMAR SINGH

SUBMITTED BY:
M.ZEESHAN
MBA (BANKING & FINANCE)
SUBMITTED TO:
DR.MOHSIN

SOURCE:
THE PAKISTAN ACCOUNTANT
JULY-AUGUST 2007
PRESENTATION INCLUDES
RATIONALE FOR
RMLs
INTERNATIONAL
PROFILE
WHAT IS RML
ISSUES AND
CHALLENGES
RATIONALE FOR RMLs
UNSTABLE OR LOW INTEREST RATES
INVESTMENT IN RISKIER BUSINESS
TO EARN MORE
TWO WAYS TO GET CASH AGAINST
ONES HOUSE
SELL THE HOUSE
BORROW AGAINST THE HOUSE
BOTH HAVING SERIOUS DRAWBACKS
NATIONAL HOUSING COMMISION
GAVE THE IDEA OF RML
INTERNATIONAL PROFILE
IN USA IN 1961 NELSON HAYNES
ISSUED THE FIRST RML TO
NELLIE YOUNG
IN 1991 US GOVERNMENT
LAUNCHED ITS FIRST RML TO
BUILD THE CONFIDENCE OF
PEOPLE
PRESENTLY WELL KNOWN IN
MANY COUNTRIES
 WHAT IS RML
MORTGAGE THE HOUSE WHILE HAVING
THE RIGHT TO STAY IN IT AND HAVE
STEADY INCOME
A HOUSE OWNER ABOVE 60 YEARS OF
AGE CAN GET UPTO 60% OF THE MARKET
VALUE OF THE HOUSE.
LUMPSUM,MONTHLY,QUARTERLY,
ANNUALY,OR WHENEVER NEEDED ARE
THE MODES OF PAYMENTS.
RECOVERY AFTER DEATH OR EXPIRY
PERIOD.
ISSUES AND CHALLENGES
LEGAL ISSUES
SOCIAL ISSUES
TRANSPARENCY ISSUES
FINANCIAL ISSUES
ACCOUNTING ISSUES
INTEREST RATE FLUCTUATION
ISSUES
 CONCLUSION
ALTHOUGH THE INITIAL SEEKERS
IN INDIA WOULD BE THE ONES
WHO HAVE NO FAMILY SUPPORT
OR WHO DON’T WORRY ABOUT
LEAVING ASSETS FOR HEIRS,
HOWEVER, STEPS ON
GOVERNMENT’S PART WILL HELP
BOOST THE SECTOR.
?