Reverse Mortgage Scheme

inverse mortgage system

Reversal of mortgage legislation in France On 23 March 2006, the judgment on guarantee operations led to a review of the functioning of mortgage lending in France. Part of the measure of this was the introduction of the'reverse mortgage' into the spectrum of mortgage credits provided by banks. Remember: this is similar to a mortgage due on the borrower's decease, the amount of which is repaid according to the value of the assets at the time of decease.

Therefore, no payment is due on the amount obtained from the debtor during his life. Amendments have been made to the amount of the solicitor' s and mortgage bond issue charges, the usurious interest rates and the early repayment provisions. Lastly, two Regulations of 20 February 2007 contain provisions concerning own funds requirement and supervisory oversight of credit.

A number of comments have also been made on the size of the reverse mortgage a la la française, asking a number of question on a number of topics, such as the funding and standard of living for retired people, heritage and the likely effects on spending and the refurbishment of existing buildings.

However, a reverse mortgage is not yet available in France. Certain banks, however, are considering reverse mortgage offerings. The Crédit Foncier, through its president François Drouin, is constantly committed to meeting the long-term needs of its clients in the field of home loan financing. However, it is likely that a number of determinants will contribute to delaying the effective uptime of reverse mortgage lending in France, and the significance of these determinants will vary from operation to operation.

The " technological " factor includes, in particular, the impact on the creditor of the regulatorial action taken to protect the creditor, since, unlike reinsurance instruments, the creditor cannot divide the inherent imbalance of the instrument. If, for example, the borrower's liability is lower than the value of the immovable asset, the surplus is transferred to the beneficiaries, while conversely, if the liability is higher than the value of the immovable asset, e.g. because of a longer than anticipated life of the borrowing asset or because of changes in immovable asset values, the creditor must make good the losses.

Therefore, it is up to the creditor to somehow assess the likely accumulated loss and the resulting reserves resulting from the existing credit enhancements and to assess the suggested maxima of credit value ratio on the basis of the creditor's statistically expected lifetime. Warranties are no longer an exemption that only applies in the case of defaults, but the "normal" way of paying back credit.

It has an impact on time limits and thus on the viability and complexities of the proceedings to be established, as inheritors may intervene during recovery. In France, the term fourager implies the spectacular nature of an surgery in connection with the topic of deaths.

There are also significant mental concerns about the relationship between seniors and prospective inheritors. The consumption of real estate wealth at the peril of abandoning the inheritors can be regarded as the behavior of the typical old man.

Mehr zum Thema