Design Of Reverse Mortgage Pricing Model Based On Incentive Compatibility Theory

China's aging population has entered the forefront of the world,how to provide for the aged has become an important issue and a difficult problem facing our government.In recent years,the issue of social issues and financial expenditure has attracted wide attention from academia and government circles.In the research on the old-age problem,the reverse mortgage of housing has become the mainstream trend,that is,using the existing housing of the elderly to mortgage,lending to the elderly to pay daily living expenses and health care costs,etc.This way will be the future cash flow into the money that can be spent now,and gradually become the pension of each country.Be the first choice.In our country,people are deeply influenced by the traditional culture for thousands of years.They think that raising children to guard against old age,or that real estate should be inherited by their children,etc.In addition to the restrictions on property rights,land-related provisions,population factors,comprehensive quality and so on,the reverse mortgage business has not been vigorously promoted in our country.The key is that there is no standardized pricing model.In foreign countries,the pricing method of reverse mortgage has been relatively mature.Chinese scholars mostly quote foreign experience directly.The pricing method is not very in line with China's specific national conditions.Therefore,this paper will focus on how to price reverse mortgage in China on the basis of previous studies.Firstly,this paper elaborates the definition and theoretical basis of housing reverse mortgage loan in detail,and reviews and summarizes the research results of predecessors at home and abroad.Based on the in-depth analysis of the relevant theories of housing reverse mortgage loan,this paper constructs an incentive compatibility model,incorporates all factors affecting housing reverse mortgage loan into the model,and constructs a pricing model of housing reverse mortgage loan.In addition,considering the objective reality of China,interest rate,exchange rate and mortality rate are introduced as reference factors to calculate and simulate various parameters,which reduces the calculation errors caused by incomplete factors,and modifies the static model to improve the accuracy.In the model,the insurance pricing method is introduced to comprehensively consider the various risks faced by the reverse mortgage of housing,and the pricing is compared according to one-time loan settlement and annuity settlement.In addition,according to the mortality rate of different age population,combined with the relevant data of Nanjing Housing Authority,Monte Carlo simulation is used to simulate and calculate the results of the model for many times.The loan quota of borrowers under different ages is solved,which verifies the applicability of the pricing model and further infers in China.Broad housing reverse mortgage provides certain theoretical basis and provides reference value for pricing.