Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Thursday, March 31, 2016

Examining Reverse Mortgages In Retirement Income

Business_expenseThis column discusses research on reverse mortgages in retirement income conducted by Harold Evensky, Shaun Pfeiffer, and John Salter of Texas Tech University.  These researchers “published two articles—beginning with the August 2012 issue of the Journal of Financial Planning—investigating the role of a standby line of credit.”  The motivation for this research stemmed from an incident which occurred during the financial crises in 2008 when a home equity line of credit (HELOC) kept getting canceled.  The HELOC had been established to serve as a line of credit for clients and was supposed to be there in times of market stress.  There was also similar research done by the Sacks brothers which this column discusses.  This column discusses the HECM Saver line of credit and how it can improve portfolio survivorship rates.

See Wade Pfau, Academic Acceptance for Reverse Mortgages in Retirement Income, Forbes, March 31, 2016.


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