Reverse mortgages help elderly homeowners to unlock and consume home equity while continuing residing in their homes. Demand for reverse mortgage is far behind predictions. Based on a survey of U.S. homeowners aged 58 we assess product knowledge (literacy) and its relation to reverse mortgage...

Home Equity Conversion Mortgages ("HECMs'') implicitly bundle put options on borrowers' homes with non-defaultable credit lines. Put proceeds are bequeathable and insure longevity and home prices. Credit use is elective, so the put's expected net present value bounds HECM's value to borrowers...

Home Equity Conversion Mortgage (HECM) data seem to confirm two concerns about these federally insured loans offered to older US homeowners. First, originations are rare, consistent with a familiar disinterest in extracting home equity through sale among older owners, even those with low wealth....

Home Equity Conversion Mortgages ("HECMs") offer older US homeowners liquidity and implicit home price insurance. If borrowers' homes are worth less than their loan balance when they move or die, their liability is limited to collateral value. The Federal Housing Administration ("FHA") absorbs...