Study On Operation Mode Of Urban Residential Reverse Mortgage Loan In China

As the process of aging speeds up in China, the state will face an increasingly heavy pressure from the social pension. However, the present stage is during the transition period which is from old system to new system, so the social security system is defective, thus it is necessary to expand multi-channel, in order to fill the existing community serious shortage of old-age function. At the same time, residential reverse mortgage loan, which is an effective retirement financial products in developed countries in western, is used to resolve some difficulties for old persons. However, the implementation of the reverse mortgage faces more problems and obstacles, so the operation mode and pricing model of housing mortgage reverse in China should be designed according to national conditions.First of all, from the current aging trend in China, the background and significance of this article and recent situation of study are illustrated. In this paper, reverse mortgages and the related theoretical basis are presented in detail. And based on the above content, the reverse mortgage loan operating conditions in foreign countries, and national implementation of these advantages and disadvantages of this product were analyzed. At the same time, the author pointed out the existing opportunities and challenges of implementation of reverse mortgage loan in China combined with national conditions, which pave the way for the proposed loan mode.Second, the pension manner of residential reverse mortgage loan is positioned, the organizational model which is suitable for national conditions is chosen, and the appropriate reverse mortgage operation mode is designed. Loaning is carried out by two steps. In the early stage it is operated in primary market, and then the gradual implementation of the reverse mortgage loan securitization of housing operations in the mature market, lending operations to solve the bottleneck in the process of funding. At the same time, the appropriate insurance and credit mechanisms should be established during the operation to ensure that successful operation of reverse mortgage loans. In this paper, the key to the operation of the process is priced, whether for the right to redeem the loan pricing model were established, and an example of combining the two different pricing results in Xi'an were compared and analyzed, which provides a reference for different types of old persons combine their demand for loans type.Finally, as the operation of residential reverse mortgage risk may be encountered in the process, identity system of risk is established, the main risk is analyzed and the corresponding circumvention measures are proposed, and some suggestions about China's urban residential reverse mortgage loan are carried out. At the same time, the author pointed out the existence of shortcomings in this paper, and future research directions were discussed.