National Housing Bank to provide guarantees for reverse mortgage | INRnews
Mumbai, India, March 02, 2007 -

The National Housing Bank which had earlier prepared a reverse mortgage scheme after discussions with banks and housing finance companies is to offer guarantees to senior citizens to protect them from any default by their lenders on reverse mortgage payments.
A reverse mortgage allows senior citizens above 62 years to mortgage their owned homes and receive a regular stream of income over 15 years.

The market for reverse mortgage could be around Rs. 5,000 crores.

While the scheme is beneficial to senior citizens, many organisations have expressed concerns about default by the lenders on their payment obligations. It is to address these concerns that the NHB plans to offer guarantees on regular payments, though this would be optional and available at a fee.

By INRnews Correspondent

Source :http://www.inrnews.com/realestateproperty/india/housing_finance/national_housing_bank_to_provi.html