A more thorough explanation:

RAM stands for Reverse Annuity Mortgage. It is a type of mortgage where the lender gives money to the borrower over a long period of time, usually to elderly borrowers, to provide regular income. The loan is repaid in a lump sum when the borrower dies or when the property is sold.

Example: An elderly couple owns a house but needs additional income to cover their expenses. They take out a RAM and the lender gives them a monthly payment. When the couple passes away, their heirs sell the house and use the proceeds to pay off the RAM.

This example illustrates how a RAM can provide regular income to elderly borrowers and how the loan is repaid when the property is sold.