Research On The Reverse Mortgage Feasibility And Application In China

Because of the social security system supporting for the elder in China are facing challenges by the serious problems such as population aging, family scale shrinking, huge elderly funding deficit and the intrinsic defects existing in the elderly security system itself. we have to reform it and at the same time ,we will look for new modes to alleviate the pressure of the old-age support .Reverse Mortgage is a kind of financial products to arise the income of the elders retired and has been identified as a good financial product in developed countries ,but it is different from the developed countries, our countries encounters the population aging problem in the base of the undeveloped economy and the inadequate average income .The extended policy of family planning in china will lead to a serious sequent that a large number of "four-two-one" type families will come forth .and the combination of an accelerated aging of society and the evolution of the family structure will result in a substantial increase in the number of "empty-nest" families too. So the situation of old-age care is more complicated and serious in china. We should study the other countries'experience and excogitate the Reverse Mortgage which is fit to our country.First,the concept and basic theory of Reverse Mortgage are introduced in this paper. simultaneity,According to the popularized situation in developed counties, it sum up the evolution rules and use their experience for reference; Secondly, based on the state of our country, the paper will put forward the necessity and feasibility of the Reverse Mortgage and inquiry into the market condition and the meaning of our country; Thirdly, the paper will study the pricing of the Reverse Mortgage which is the heart of it. This chapter primarily studies the pricing on different products of Reverse Mortgage through insurance actuarial theory and Option Pricing Theory. At last, it will study the applyment of RM in china, analyze the risk and obstruction which will occer in the applyment course detailedly, discuss the replied marketing policy to supply the reference for the loan institution to expand their operation.