Legal Research On The Reverse Mortgage System In China

Though originates in the Netherlands, the reverse mortgage has already developed successfully in the United States. In the United States it has become an effective way of endowment and improves elderly people's quality of life. Scholars has introduced the reverse mortgage to our country many years ago, but it is only limited to the research of basic theory in China. Because the aged tendency of population in China has become increasingly serious, endowment ability of society and family is seriously inadequate. We need a new way to relieve the pressure from pension. In 2013, the State Council issued the relevant guidance to support companies to operate the reverse mortgage. In 2014, the CIRC also issued documents to encourage old people to participate in the reverse mortgage. Practical work has been carried out for nearly a year, only an insurance company filed an application. Until 2015, "xingfu fanglaibao" reverse mortgage products finally won the approval of the CIRC, it became the first reverse mortgage products in China. The primary coverage and main features of reverse mortgage is the key point of the paper. The paper aims at summing up the experience from foreign countries to cover the shortage of reverse mortgage in China.In addition to the introduction and conclusion, the article is divided into five parts:The first part mainly talks about the meaning of the reverse mortgage, which is characterized as a kind of the combination of the housing mortgage and the endowment insurance in China. This part finds out the difference among some concepts of similarity. The development process of the reverse mortgage in China is also introduced in this part.The second part mainly talks about the importance of the reverse mortgage system in China. First, the reverse mortgage can unite the power of nation, society and individuals to solve the problem of pension. It also can take full advantage of many parties and inspire potentiality of the family for pension. Secondly, the reverse mortgage has an advantage in realizing old people's demand of living out their life in retirement at home. Finally, according to the analysis of survey data, the reverse mortgage has specific population to participate in and great potential for development in China.The third part mainly talks about the current situation and shortcoming of the reverse mortgage in China. Because the reverse mortgage is in the early stages of development in our country, there are a limited number of pattern for reference. The reverse mortgage do not work out in China. The insurance company and elderly people both don't have enthusiasm to participate in the reverse mortgage. It still exists some defects: first, there is a lack of support of the government; second, the reverse mortgage is lack of a legal basis and conflicts with the existing legal system; third, the reverse mortgage has huge business risk, while it is lacking in the mechanism of preventing the risk; forth, because the supply of the reverse mortgage products is insufficient in the Chinese market, old people don't have opportunities to choose appropriate service for themselves.The fourth part mainly talks about the successful experience about the reverse mortgage in overseas, including United States, Britain, Canada, Singapore, Japan and Hong Kong of China.The fifth part mainly talks about the suggestions that how to improve the system of the reverse mortgage in China: first, the government should try its best to support this new system and play an active role in supervising the management of this system; second, because perfect legislation is very important to this system, the government should take legislation about reverse mortgage seriously; third, we should establish the effective mechanism to prevent the risk of reverse mortgage in China; fourth, we should allow more and more companies to manage the reverse mortgage to increase the supply in the market; fifth, we should realize mutual coordination among the reverse mortgage and other systems.