However, a rapidly aging population could bring significant growth to the segment and more risks with it.
That structure brings longevity risk, in which it takes longer than expected to recover the money loaned, into play. The report said longevity risk was greatly influenced by the borrower’s age. “As long as the market corrects itself , the property values move in a more reasonable range, the risks should be managed by the banks,” Temurov said.Article content
from Birch Hill Equity Partners Management Inc. Equitable Bank, while a smaller player in the market, saw its loan book grow to $304 million at the end of this year’s first quarter.Article contentPhoto by Chris Helgren/Reuters BRS expects lending institutions offering reverse mortgages to tighten their underwriting standards and become more conservative in their lending policies to avoid risks to their business.Article content