Pricing Model of Reverse Mortgage in China

Yang Bai; Bin Wan; Yiyi Jiang; Jie Yan; Chonggao Liu

doi:doi:10.11648/j.sjams.20170502.15

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Pricing Model of Reverse Mortgage in China

Yang Bai, Bin Wan, Yiyi Jiang, Jie Yan, Chonggao Liu

Published in Science Journal of Applied Mathematics and Statistics (Volume 5, Issue 2)

Received: 29 March 2017 Published: 29 March 2017

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Abstract

With the increasing aging problem, house-for-pension program is attracting more and more people’s attention in China. As an important financial tool, reverse mortgage has been developed quite well in a number of developed countries across the globe. Therefore, with reference to the developed countries, it could be convenient and effective way to learn these mature and valuable experiences to develop old-age care products and systems which accord with the situation of China. The key of the practice of reverse mortgage relies on its pricing. The article therefore emphasizes on the pricing of reverse mortgage to research and expound. This paper tries to use a hybrid model to make a relatively comprehensive introduction of the product mix, pricing principle and the risk control of housing reverse mortgage. The potential issues that may confront during the course are discussed for future implementation.

Published in	Science Journal of Applied Mathematics and Statistics (Volume 5, Issue 2)
DOI	10.11648/j.sjams.20170502.15
Page(s)	94-97
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Reverse Mortgage, Pricing Model, Endowment Insurance, Risk

References

[1]	Ban Xiaona, Li Dongyang. Housing Reverse Mortgage Loan Endowment Patterns in the United States and Its Enlightenment. 2015.
[2]	Chen Lei. On China’s Pension Financial Innovation and the Pricing Model of Housing Reverse Mortgage. 2014.
[3]	Jin Xiao-tong, Cui Hong-jing. Experience References from Asian Countries’ “House-for-pension Scheme” —An Example of Reverse Mortgage in Japan and Singapore. 2014.
[4]	Shen Hongbo, Wang Xuguo, Lu Yiliu. The Pricing Model and Rish Analysis of Reverse Housing Mortgage. 2013.
[5]	Yu Yan-fang. Experience and Enlightenment from American Reverse Mortgage of House-for-pension Scheme. 2015.
[6]	Zhao Li-xia. Combined Insurance Actuarial Model under Stochastic Interest Rate and Dependent Lifetime. Journal of Inner Mongolia Normal University (Natural Science Edition), 2014, Vol.43 No.4.
[7]	Olivias. Mitchell, John. Piggott. Unlocking Housing Equity In Japan[J]. Journal of the Japanese and International Economies, 2004, 18(4):466-505.
[8]	Ward SC, Chapman CB, Klein JH. Theoretical versus applied models: the newsboy problem. Omega 1991;19:197-206.
[9]	Jaynes, E. T. 2003. Probability Theory: The Logic of Science. Cambridge University Press, Cambridge, UK.
[10]	Suh-Ryung Kim, Jung Yeun Lee, Boram Park, and Yoshio Sano: The competition hypergraphs of doubly partial orders, Discrete Applied Mathematics, 165(2014) 185-191.

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APA Style

Yang Bai, Bin Wan, Yiyi Jiang, Jie Yan, Chonggao Liu. (2017). Pricing Model of Reverse Mortgage in China. Science Journal of Applied Mathematics and Statistics, 5(2), 94-97. https://doi.org/10.11648/j.sjams.20170502.15

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ACS Style

Yang Bai; Bin Wan; Yiyi Jiang; Jie Yan; Chonggao Liu. Pricing Model of Reverse Mortgage in China. Sci. J. Appl. Math. Stat. 2017, 5(2), 94-97. doi: 10.11648/j.sjams.20170502.15

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AMA Style

Yang Bai, Bin Wan, Yiyi Jiang, Jie Yan, Chonggao Liu. Pricing Model of Reverse Mortgage in China. Sci J Appl Math Stat. 2017;5(2):94-97. doi: 10.11648/j.sjams.20170502.15

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@article{10.11648/j.sjams.20170502.15,
  author = {Yang Bai and Bin Wan and Yiyi Jiang and Jie Yan and Chonggao Liu},
  title = {Pricing Model of Reverse Mortgage in China},
  journal = {Science Journal of Applied Mathematics and Statistics},
  volume = {5},
  number = {2},
  pages = {94-97},
  doi = {10.11648/j.sjams.20170502.15},
  url = {https://doi.org/10.11648/j.sjams.20170502.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjams.20170502.15},
  abstract = {With the increasing aging problem, house-for-pension program is attracting more and more people’s attention in China. As an important financial tool, reverse mortgage has been developed quite well in a number of developed countries across the globe. Therefore, with reference to the developed countries, it could be convenient and effective way to learn these mature and valuable experiences to develop old-age care products and systems which accord with the situation of China. The key of the practice of reverse mortgage relies on its pricing. The article therefore emphasizes on the pricing of reverse mortgage to research and expound. This paper tries to use a hybrid model to make a relatively comprehensive introduction of the product mix, pricing principle and the risk control of housing reverse mortgage. The potential issues that may confront during the course are discussed for future implementation.},
 year = {2017}
}

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TY  - JOUR
T1  - Pricing Model of Reverse Mortgage in China
AU  - Yang Bai
AU  - Bin Wan
AU  - Yiyi Jiang
AU  - Jie Yan
AU  - Chonggao Liu
Y1  - 2017/03/29
PY  - 2017
N1  - https://doi.org/10.11648/j.sjams.20170502.15
DO  - 10.11648/j.sjams.20170502.15
T2  - Science Journal of Applied Mathematics and Statistics
JF  - Science Journal of Applied Mathematics and Statistics
JO  - Science Journal of Applied Mathematics and Statistics
SP  - 94
EP  - 97
PB  - Science Publishing Group
SN  - 2376-9513
UR  - https://doi.org/10.11648/j.sjams.20170502.15
AB  - With the increasing aging problem, house-for-pension program is attracting more and more people’s attention in China. As an important financial tool, reverse mortgage has been developed quite well in a number of developed countries across the globe. Therefore, with reference to the developed countries, it could be convenient and effective way to learn these mature and valuable experiences to develop old-age care products and systems which accord with the situation of China. The key of the practice of reverse mortgage relies on its pricing. The article therefore emphasizes on the pricing of reverse mortgage to research and expound. This paper tries to use a hybrid model to make a relatively comprehensive introduction of the product mix, pricing principle and the risk control of housing reverse mortgage. The potential issues that may confront during the course are discussed for future implementation.
VL  - 5
IS  - 2
ER  -

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Author Information

Yang Bai

Graduate School of Business Administration, Ajou University, Suwon, South Korea
Bin Wan

Guali Middle School, Ziyuan County, Guilin, China
Yiyi Jiang

Chuanshan College, University of South China, Hengyang, China
Jie Yan

Meixi Middle School, Ziyuan County, Guilin, China
Chonggao Liu

Guali Middle School, Ziyuan County, Guilin, China

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Plain Text BibTeX RIS

APA Style

Yang Bai, Bin Wan, Yiyi Jiang, Jie Yan, Chonggao Liu. (2017). Pricing Model of Reverse Mortgage in China. Science Journal of Applied Mathematics and Statistics, 5(2), 94-97. https://doi.org/10.11648/j.sjams.20170502.15

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ACS Style

Yang Bai; Bin Wan; Yiyi Jiang; Jie Yan; Chonggao Liu. Pricing Model of Reverse Mortgage in China. Sci. J. Appl. Math. Stat. 2017, 5(2), 94-97. doi: 10.11648/j.sjams.20170502.15

Copy | Download

AMA Style

Yang Bai, Bin Wan, Yiyi Jiang, Jie Yan, Chonggao Liu. Pricing Model of Reverse Mortgage in China. Sci J Appl Math Stat. 2017;5(2):94-97. doi: 10.11648/j.sjams.20170502.15

Copy | Download

@article{10.11648/j.sjams.20170502.15,
  author = {Yang Bai and Bin Wan and Yiyi Jiang and Jie Yan and Chonggao Liu},
  title = {Pricing Model of Reverse Mortgage in China},
  journal = {Science Journal of Applied Mathematics and Statistics},
  volume = {5},
  number = {2},
  pages = {94-97},
  doi = {10.11648/j.sjams.20170502.15},
  url = {https://doi.org/10.11648/j.sjams.20170502.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjams.20170502.15},
  abstract = {With the increasing aging problem, house-for-pension program is attracting more and more people’s attention in China. As an important financial tool, reverse mortgage has been developed quite well in a number of developed countries across the globe. Therefore, with reference to the developed countries, it could be convenient and effective way to learn these mature and valuable experiences to develop old-age care products and systems which accord with the situation of China. The key of the practice of reverse mortgage relies on its pricing. The article therefore emphasizes on the pricing of reverse mortgage to research and expound. This paper tries to use a hybrid model to make a relatively comprehensive introduction of the product mix, pricing principle and the risk control of housing reverse mortgage. The potential issues that may confront during the course are discussed for future implementation.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Pricing Model of Reverse Mortgage in China
AU  - Yang Bai
AU  - Bin Wan
AU  - Yiyi Jiang
AU  - Jie Yan
AU  - Chonggao Liu
Y1  - 2017/03/29
PY  - 2017
N1  - https://doi.org/10.11648/j.sjams.20170502.15
DO  - 10.11648/j.sjams.20170502.15
T2  - Science Journal of Applied Mathematics and Statistics
JF  - Science Journal of Applied Mathematics and Statistics
JO  - Science Journal of Applied Mathematics and Statistics
SP  - 94
EP  - 97
PB  - Science Publishing Group
SN  - 2376-9513
UR  - https://doi.org/10.11648/j.sjams.20170502.15
AB  - With the increasing aging problem, house-for-pension program is attracting more and more people’s attention in China. As an important financial tool, reverse mortgage has been developed quite well in a number of developed countries across the globe. Therefore, with reference to the developed countries, it could be convenient and effective way to learn these mature and valuable experiences to develop old-age care products and systems which accord with the situation of China. The key of the practice of reverse mortgage relies on its pricing. The article therefore emphasizes on the pricing of reverse mortgage to research and expound. This paper tries to use a hybrid model to make a relatively comprehensive introduction of the product mix, pricing principle and the risk control of housing reverse mortgage. The potential issues that may confront during the course are discussed for future implementation.
VL  - 5
IS  - 2
ER  -

Copy | Download