Crisis for Reverse Mortgage
The economy crisis creates serious bad effect for overall world economy condition. Taken from Reuters, we know about the actual reports form the largest 15 global banks. All of them are expected to further shrink their balance sheet by about $2 trillion in 2009 and longer-term return on equity will remain subdued for the next two years. This is very clearly proved that economy recession has hit financial sector in every country. That is contrary with the amount of deposit rate inside the banks because many people now prefer to choose the certification of deposit issued by bank for investment instrument because of its safety. People only search for the highest cd rates they possible to find. They don’t care about low interest that they will take because this is the only left choice for saving money without risky factor. How about the bank bankruptcy? They hold the policy that their money below hundred thousand dollars
will be guaranteed by the fdic insurance, the federal issued insurance. The other support is coming from availability of applying the medicare insurance within few months after creating the deposit. This is medical insurance to maintain our medical cost and cover any medical action if we need it. The banks should work hard to increase their performance. What about your reverse mortgage? Do you still believe it?