![Pensioners Pensioners](https://www.cepar.edu.au/sites/default/files/styles/medium/public/iStock-537302536_2.jpg?itok=MEFhuJDr)
Daniel Cho, Katja Hanewald and Michael Sherris
We analyse the risk and profitability of reverse mortgages with lump-sum or income stream payments from the lender's perspective. Reverse mortgage cash flows and loan balances are modelled in a multi-period stochastic framework that allows for house price risk, interest rate risk and risk of delayed loan termination.
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