A COMPARATIVE ANALYSIS OF REVERSE MORTGAGES: EVIDENCE FROM PUERTO RICO AND THE UNITED STATES

摘要

This paper is a comparative and descriptive analysis of reverse mortgage loans originated in the United States and Puerto Rico from 2010 to 2012 and examines whether differences exist between both jurisdictions and the possible reasons for the latter. The study also compares the average profile of a reverse mortgage borrower in the United States and Puerto Rico. The number of new reverse mortgages generated in the United States and in Puerto Rico decreased from 2010 to 2012. However, during that same time period, the interest rate charged in Puerto Rico on reverse mortgages was higher than in the United States. There was also a reduction in the age of the average borrower. The distribution or the uses of the borrowed funds in Puerto Rico is consistent with prior studies performed in the United States.