Research On The Risk And Risk Evading Mechanism Of Housing Reverse Mortgage

With the coming of aging period, the percent of elder people's population in our country will reach to 24%, even 35% in Shanghai and Beijing according to the present mechanism. In the mean while, the gap of the national pension will be up to more than＄20 billion. That is to say, the expenditure will exceed the income of the pension in several years if this situation were not improved. It will happen that a great number of elder people will face the dilemma that they cannot get the pension. The'4-2-1'structure in a family aggravates the endowment burden of the youth. While the elders'income is less than the medical an service fees. Considering the degree of concentrated foster low, welfare agency's short supply, exploring better supporting patterns is urgent to improve our country's social security.Reverse Mortgage has been one of the methods to solve the aging problem in America, Singapore and many other developed countries. Reverse Mortgage is effected by the time of payment, the actual value of mortgage assets and other factors; therefore, a great uncertainty exists in it and both debtor and creditor's interest will be effected.The article makes a deep research on the risks in the process of reverse mortgage, including interest risk, house price risk, longevity risk, moral risk and so on. Through the analysis, the risk-bearing mechanisms are proposed basing on the features of risks, which is intended to avoid kinds of risk in reverse mortgage, proposing some suggestions to the reverse mortgage's well-carrying in our country.