Legal Research On China Reverse Mortgage System

In recent years, China has entered aging society. Pension issues related to theelderly’s livelihood has become one of the top priorities. In China, social security andpension security mechanism is not perfect. Moreover, owing to the implementation ofFamily Planning Policy in the long term leading to the result of most of our familiesevolving into the "4-2-1" structure, family burden becomes overwhelmed. In additionto actively improving the social security system in China, the use of some auxiliarymeans is very necessary, and reverse mortgage system comes into being as asupplement to pension mode.Reverse mortgage is mainly suitable for the elderly with a house but less money.They use house as collateral to the lender to apply for reverse mortgage, one-time orregular access to a steady cash to protect them to live a better life until they die.Reverse mortgage in foreign countries has been for decades the development processand become a sophisticated financial product, being proven to be an effective way ofpension. However, it was currently still not well developed in China, while China’sactual situation and the need fit such a system. In this context, this thesis will makelegal issues of reverse mortgage system as the topic, aiming to promoting reversemortgage system in our country’s development. The following is the main content ofthis thesis:Firstly, this thesis introduces the concept and characteristics of reverse mortgage,and comparison of several similar systems and reverse mortgage with comparative research method, reflecting the characteristics of reverse mortgages, advantages.Secondly, this thesis analyzes the development process and institutional demand forreverse mortgage system, especially the necessity of housing reverse mortgage systemin our country’s development exposition. Thirdly, this thesis analyzes the legalobstacles in our country to carry out reverse mortgage. Fourthly, this thesis is drawnfrom the analysis for the legal obstacles to make some system construction, including:the introduction of “Land Rent System” to the land management system, design ofrural resident and residential land ways, changing “small property” to the “bigproperty”, the introduction oft the relevant provisions of the guarantee system toimprove the Guarantee Law and the establishment of Reverse Mortgage InsuranceLaw and so on.