文章基本信息

标题：Modelling the profitability of reverse mortgage loans with life-long annuity payments
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作者：Elena Kuzmina ; Andrei Ianin
期刊名称：E3S Web of Conferences
印刷版ISSN：2267-1242
电子版ISSN：2267-1242
出版年度：2020
卷号：203
页码：5020-5031
DOI：10.1051/e3sconf/202020305020
出版社：EDP Sciences
摘要：The article deals with the economic mechanism of reverse mortgage as a loan product aimed at raising the welfare of senior citizens who own real estate, for organic farming and soil management. The article discusses the financial and historical aspects of the implementation of the reverse mortgage instrument, as well as defines a potential of implementation of this instrument in Russia. Having identified the potential, the authors also mentioned the factors that could prevent Russian banks from adopting this mechanism. The article addresses one specific factor – absence of adequate instruments to predict and evaluate financial performance of reverse mortgage instruments. Consequently, the aim of the current paper is to create a mathematical model of reverse mortgage loan; specifically, current paper focuses on reverse mortgage loan with life-long annuity payments. In order to derive such model, the authors adopted a perspective, according to which loans are perceived as specific products present on an open market. As a result, we have obtained a model that allows lenders to calculate expected gains from reverse mortgage loans with respect to unknown loan span and varying demand, thus diminishing the uncertainty about reverse mortgage properties and making this financial product more attractive and for agricultural planning and economic, agricultural logistics and transport, et al.