The Study Of Housing Reverse Mortgage Loan Problems Of China

Since the reform and opening up, aging degree deepens gradually in our country. Because of our family planning policy a majority of couples have only one child, so family endowment function will become weak gradually, and the endowment burden on children will become heavier in the future. This inspired us to take more attentions to the needs of new pension mode.I will analyze relevant theories and practical problems with housing reverse mortgage loan, and then try to study the implementation of housing reverse mortgage loan in China in this paper.First, I will expound the grim situation from the current population aging and choose a background paper about research achievements. I made exhaustive introductions with the connotation, the basic feature and the related theory about the reverse mortgage loan, then emphasize the differences and relationship with reverse mortgage loan and common housing loan. And based on this, I will introduce the housing reverse mortgage loan in the United States, Canada, Singapore and other developed countries, and analyze the operating conditions of foreign operation experience.Then, I will illustrate the housing reverse mortgage loan in theoretical and realistic significance. Theoretical significance is about housing reverse mortgage loan can strengthen the cooperation of financial, insurance, real estate etc industries to develop new profit model and manufacturing new profit growth point, and relieve pressure and improve many elderly life state and so on. Realistic significance includes precondition and the ease of a series of severe situations.Then I will carry out the specific difficulties facing with this loan such as: homeowners can only have 70 years of land use, the influence of traditional culture, the insufficiently developed of relevant intermediary service agencies and lack of risk-sharing mechanism. Then, the author will summary and classify the main risks when carry out the business such as:longevity risk, interest rate risk, housing maintenance risk, liquidity risk,and put forward the corresponding avoidance.Then, the author will carry out the core problem-study and discuss pricing. This paper firstly analyzes the pricing theory foundation of housing reverse mortgage loan. There are family resources optimization allocation theory, options pricing theory, life cycle theory and actuarial theory. Then according to the principle of actuarial pricing I will apply the Chengdu city as the research object. Under the fixed rate assumptions, I will analyze this objective and give improvement scheme, which also further proves that housing reverse mortgage loan market demand in China is quite large, and at last, I will point out the pricing method under a floating interest rate assumption.Next, the author will apply actuarial pricing model to evaluate the loan risk; Then I will analyze the risk prevention strategies of housing reverse mortgage loan. The healthy development of the business needs the cooperation of all agencies, especially utilizes the industrial advantage of insurance companies.Finally, the author has summed up this paper in the end.