Study On The Pricing And Risk Of Reverse Mortgage

With the intensification of China’s aging population, the pension funding gap of the social security system will be increasing, which could lead to the shortness of resources in social pension, and the mainstream model "four-two-one" or "four-two-two" institution of the family will make the family pension burden become heavier and heavier. Under this background, the situation of China’s pension problem is more complex and severe than developed countries, the entire community will be faced with unprecedented endowment pressure.How to solve the pension problem, alleviate the pension pressure has become a major social issue, widely discussed by the government, society, experts and scholars. In addition to rely on the state’s strong reinforcement to the construction of the social security system, we must promptly open up a new pension model to increase pension funding sources to cope with the aging of the upcoming crisis. Beijing wroted "the Housing Endowment" into the Aging Development Planning of "12th Five Year Plan", which means that the government is trying to explore the new pension of the reverse mortgage. Reverse mortgage a manner of the pension of an elderly self, the elderly can get a substantial fixed income to maintain and improve their later years without selling real estate, this can not only reduce the family burden on the pension, but also maximization the effectiveness of economic resources of the entire life cycle of the elderly. Reverse Mortgage is an effective way to solve the pension problems of our country at this stage.Experts and scholars in China began to Reverse Mortgage loans for housing since the mid-1990s, but most of these studies focused on the introduction of successful experience in foreign countries and feasibility analysis of implementation in our country. The operating mechanism and mode of operation was also discussed. But there are only a few studies do research on product pricing and risk factors analysing. In this thesis, I study on the Reverse Mortgage by using theoretical and empirical research method, and also qualitative and quantitative analysis. In this thesis, I build wo pricing models of Reverse Mortgage, analysis of risk factors that affect pricing and give different preventive strategies to different factors. According to China’s national conditions, I give several suggestions on the establishment of Reverse Mortgage business with Chinese characteristics to provide some theoretical support for China in carrying out Reverse Mortgage business.This thesis is divided into five chapters, starts from create different pricing model for different reverse mortgage product, then I use the actual to simulate the pricing results. On the basis of the pricing model, I specifically analyze the three risk factors that affect pricing result and propose different strategies of risk prevention for different risk factors. Finally, I put forward several suggestions on how to build the mode of reverse mortgage business with Chinese characteristics...