The Operating Institutional Evolution Of Reverse Mortgage Of America And Its Enlightenment To China

With lower birth rate and longer life expectancy, China has been an aging society. In the background of aging society, the traditional way that children should support their parents and grandparents is weak, and the China old-age pension cannot completely fill the loophole. As a new financial tool, Reverse Mortgage is a new way to improve the level of society security, and to release the fiscal burden of government. Now, many scholars make studies on this product from every perspective without the history of the product. In this article, I will analyze the history of Reverse Mortgage, find out the experiences and enlightenments, and imagine the stratagem of operating Reverse Mortgage in China.Through the analysis of relevant theoretics and literatures, collecting relative information and referential experience of foreign research, the author divides the institutional change process of American Reverse Mortgage into four phases. Describe the evolution of each phase and analyze the impact of various factors. Finally, this article measures the impact of the factors with empirical method, using the latest data as well as the reality, to testify the results of theoretical analysis.This paper puts forward its viewpoints: Reverse Mortgage is a suitable product for Chinese elders. But the government needs to set up a stable financial system, and lead the product marketing, improve the product's structure in order to fit the needs of Chinese elders.