A Research On The Basic Theory And Implementing Conditions Of Reverse Mortgage

The 21st century is the era of Population Aging, and the whole world is faced with the problem of the Population Aging. As the Population Aging, the work force reduced, affecting social labor supply on the one hand. On the other hand, a direct result of the Population Aging was that the elderly population increased. It imposed greater challenges on social endowment. The implementing of reverse mortgage opened up a new way for the elderly endowment. So far, some countries such as the United States have solved a lot of elderly endowment issues through the practice of Reverse Mortgage.Aging problems are very bad in china. It is reported that the proportion of the country's aging population has reached 11 percent at present. People over 60 years old will be more than 200 million which is 14 percent in 2015. The status and trends of Population Aging are not optimistic, meanwhile, Chinese current social security system is unsound, and its radiation loop is narrow. It will play a positive role in the issue of the social endowment if reverse mortgage can be implemented in our country.The study on reverse mortgage in china is just beginning. It has great theoretical and practical significance to do this study. In this paper, the research on the basic knowledge of the reverse mortgage and its implementing conditions was done. A product is designed for Chinese after the research on Chinese current implementing conditions about reverse mortgage. The paper is divided into six chapters:In chapter 1, the background and significance of this research were expounded. Status quo at home and abroad of the Reverse Mortgage and framework of this research is introduced. In chapter 2, firstly it is an overview of theoretical foundation of Reverse Mortgage; secondly summarizing of the practice of Reverse Mortgage in current and its positive significance were done.In chapter 3, the process of Reverse Mortgage and its risk during operation were discussed. a comparative analysis between the traditional mortgage loans and Reverse Mortgage was done. In the fourth chapter, a system-depth analysis about the micro and micro factors which have important impact on the implementing of the reverse mortgage was done.In chapter V, at first, the maturity of the conditions on China's implementing of Reverse Mortgage was evaluated, second a reverse mortgage program was designed and its pricing issues was discussed.Chapter 6 was the conclusion. The achievements were summarized at first, then the shortcomings and future research direction and focus were pointed out.