What are some stocks that could benefit from the expected boom in reverse mortgages?

Les Ismore: What are some stocks that could benefit from the expected boom in reverse mortgages?
Reverse mortgages are expected to boom in coming years as baby boomers look to retire. Anyone know of good stocks to consider to profit from this trend?

Answers and Views:

Answer by Jeff C
Nothing that isn’t REALLY risky right now with the subprime mess. You need to ask this question again in six months or a year after the whole thing has settled down! There isn’t a safe harbor in mortgages until that blows over.

A list of public mortgage companies —

But I think you’d be smoking crack to touch them until subprime worries either blow up or blow over.

Another, possibly safer option would be to invest in any of the big players in mortgage derivatives… Bear Stearns, Sachs, etc… But there again, you’ve got obvious exposure to the fallout from subprime mortgage debt.

I think the subprime/foreclosure issue is going to keep reverse mortgage market in limbo for some time. What retiree wants to even consider the possibility of mortgage default and foreclosure which is talked about daily in the news?!? You know the financial-planners are having a field day telling their clients to keep their money safe and secure, preferably in one of our vanilla funds or better yet a annuity life insurance product!

Answer by TC
Reverse mortgages could also bust in the next few years as people learn more about them and that they are not good options. Investing in a bad idea is never a good idea, no matter how many people are being taken in by it.