CREDIT RISKS:Setting up a panel to oversee a fund to cover potential losses by banks and educate older people about reverse mortgages could help industry development
Date: Mar 01, 2016
By: Ted Chen / Staff reporter
Sate-run banks have taken the lead in launching reverse mortgages for older homeowners, while their privately run peers have remained on the sidelines because of related credit risks and a lack of government assurances.
Reverse mortgages allow older homeowners to borrow money against the value of their home to fund their retirement.
Since launching reverse mortgages toward the end of last year, state-run Land Bank of Taiwan (土地銀行) has completed 22 transactions totaling NT$165 million (US$4.93 million), while Taiwan Cooperative Bank (合作金庫銀行) has carried out 36 transactions totaling NT$320 million. [FULL STORY]