Study On Operational Model Of The Reverse Mortgage Loan Of Housing

The 21^st century features the aging population.All countries face the problem to one degree or another.It has not only caused the shortage of the labor force but also given rise to a larger aging population.In consequence of this,the society needs more cost-of-living for the aged.China became an old-age society in the late 20^th century. The proportion of the aging population in China has reached 11.6%up to the end of 2007 and will reach over 25%in 2050 according to scientific prediction.At that time, China will have an aging population of 450 million.Different from developing countries,China became an old-age society when it is still a developing country with low per capita income and we can call it a model that features"aging without being rich."Moreover,China has to face an unsound social safeguard system,shortage of the public resource and funds for aged people and a weaker pattern of supporting the old.In this regard,China encounters a serious situation.Reverse mortgage loan as a mature financial invention in supporting the old has already been proved by years of practice in developed countries.It can reduce poverty and enhance the living standard of the old effectively.Learning the mature experience of developed countries and taking our unique national conditions into account,it is not only important but also realistic to develop a financial product in supporting the old and popularize the reverse mortgage loan.As China became an old-age society,related ministries and many scholars pay great attention to the reverse mortgage loan of housing.Hot discussions are held, many researches are conducted,and many useful attempts are made in this area. However,systematic research result has not achieved and effective operative model has not been formed.This paper elaborates the basic theory of reverse mortgage loan of residence and introduces its history of development and operating model in foreign countries in order to learn experience and draw on lessons.This paper has done a systematic research based on the full analysis of our country's present situations to propose a program of the development model.It comprises 7 chapters:The first chapter illustrates the research background and significance of this paper.With a review of its reference,the paper introduces the present situation of the Reverse Mortgage Loan home and abroad,defines the research clues and approaches and points out its major points of creation. In the second chapter,the Reverse Mortgage Loan is well defined through a comparison with the traditional mortgage loan.Meanwhile,there includes a general view of the theoretical basis,basic characteristics,effects and factors of risks of the Reverse Mortgage Loan.Chapter three recalls the development,operation model,experience and lessons of Reverse Mortgage Loan in other countries for the consideration of adopting the Reverse Mortgage Loan in our country.Chapter four examines sufficiently and systematically the necessity,feasibility and major barriers possible for developing Reverse Mortgage Loan in our nation.Chapter five firstly presents the result of pilot experiment now in our country.It then analyzes the problem of choosing appropriate institutes before it goes on to propose feasible operation model,operation processes suitable for our country's situations based on different theories and experiences.In its final part,some measures are suggested for avoiding possible risks.Chapter six risks of developing Reverse Mortgage Loan in our nation are presented and some measures are suggested for avoiding possible risks.It goes on propose some suggestions for developing Reverse Mortgage Loan in our nation.Chapter seven it serves as the conclusion in which the insufficiency of the research,the future researching directions and focuses are presented.