Some Issues Of Housing Reverse Mortgage Loan

As China has entered the aging society and the widening gap of pension, Our country finance does not have enough economic strength to deal with the problem of the pension. So Our country is badly in need of a new way to solve this serious problem. Draw on the experience of developed countries,reverse mortgage loans in foreign countries development proves that it can effectively solve the problem of pension in China. We can also use it to alleviate our country’s old-age pressure. This paper analyzes the business in China with the future development and may face the risk, based on the risk we make relevant countermeasures, and establish our own model.The pricing problem is important. So we investigates the price of house, gross domestic product, disposal personal income and the sale area of the house in Nanjing Pukou province. Basis these data we predict the future price of the house. Consequently, we build the pricing model for the house reverse mortgage. An example is discussed. On the basis of these, we research the early warning during2002to2010to measure whether the housing market is normal. At last, we put forward the prepayment model of reverse mortgage and build the model to predict the possibility the lender to prepay the mortgage.