A Study on the Methodology for the Optimal Reverse Mortgage Insurance Premium Structure from Policy Holders’ Perspective

2018 ◽  
Vol 113 ◽  
pp. 29-58
Author(s):  
Jeong ju Kim ◽  
Hee Sun Kim
Keyword(s):  
Insurance Premium ◽  
Reverse Mortgage ◽  
Mortgage Insurance

Rationales of Mortgage Insurance Premium Structures

1997 ◽  
Vol 14 (3) ◽  
pp. 359-378
Author(s):  
Barry Dennis ◽  
Chionglong Kuo ◽  
Tyler Yang
Keyword(s):  
Insurance Premium ◽  
Mortgage Insurance

scholarly journals International Real Estate Review

2001 ◽  
Vol 4 (1) ◽  
pp. 57-79
Author(s):  
Piyush Tiwari ◽  
Keyword(s):  
Option Price ◽  
Mortgage Lending ◽  
Insurance Premium ◽  
Cost Ratio ◽  
Mortgage Insurance ◽  
Cox Proportional Hazard ◽  
Structure Framework ◽  
Income Ratio ◽  
Prepayment And Default ◽  
Mortgage Termination

Housing mortgage finance in India is constrained by the maximum loan-to-cost ratio and installment income ratio conditions imposed by housing finance companies. The typical reason for this behaviour is that the market for the sharing of risk in mortgage lending is not yet fully developed. Mortgage insurance plays an important role in developing this market. The objective of this paper is to present a case for mortgage insurance market in India. This paper develops a mortgage premium structure framework in which mortgage insurers charge an insurance premium that equates losses to revenue. This paper also models mortgage termination due to prepayment and defaults. We contend that the termination of mortgage in housing is not as 'ruthless' as OPM theory would suggest, primarily because households are not financiers in the 'stricter sense' We have used the Cox proportional hazard model to analyze prepayment and default of mortgage behaviour in India. The results indicate that financial concerns (like the option price, loan to value ratio, and monthly principal and interest to income ratio) are important determinants besides household characteristics. The cumulative prepayment or default probabilities from these models are used in the estimation of the insurance premium structure.

On the valuation of reverse mortgage insurance

2014 ◽  
Vol 2016 (4) ◽  
pp. 293-318 ◽  
Author(s):  
Chou-Wen Wang ◽  
Hong-Chih Huang ◽  
Yung-Tsung Lee
Keyword(s):  
Reverse Mortgage ◽  
Mortgage Insurance
Sign in / Sign up

Export Citation Format

Share Document