The Implementation of Reverse Mortgage Program in Taiwan: A Study on “Welfare model” and “Commercial Model”

• Main Author: 盧柏亮
• Other Authors: 蔡培元
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/zk796d

碩士 === 國立政治大學 === 社會工作研究所 === 106 === Taiwan has launched two models of reverse mortgage (RM), i.e. “welfare” and “commercial” models. Although the period of RM development in Taiwan is relatively shorter than in other countries, there has been some experience in implementation. In order to explore the main differences between the two models, experience and difficulties in implementation, disputes in institutional design and the consideration and obstacles of the elderly in applying for RM, this study adopts qualitative research methods and uses semi-structured interviews to collect data. The interviewees include staff involved in the experimental RM program in Taipei City and staff of banks that offer RM programs. Moreover, this thesis also collects and analyzes documents related to the implementation of RM. Summing up the experience of the providers of RM programs, the main difficulties of “welfare” model include budget constraints, excessively high threshold in participating in the program, lack of an integrated agency to implement RM and legal sources. With regard to the “commercial” model, the main difficulties are: heirs do not agree to apply for RM, difficult to find obligors of notification, without sole ownership of the house, dissatisfactions of applicants with the amount of loans and lack of understandings of RM. In addition, controversial issues of RM include the regulation on the longest period of mortage, the residence issue of spouse after the death of RM applicants and the setting of obligors of notification. Regarding the motives of the elderly to apply for RM, apart from the demands for basic living expenses, other motives include reluctance to receive living expenses from childen, raising money to hire caregivers or stay in a nursing home, promotion of life quality and tax avoidance. Therefore, this study suggests that the regulations on the longest period of RM should be extended and banks should ensure the extention of RM before the amendment of regulations. In addition, the rules on obligor of notification may be appropriately relaxed. The bank should consider the housing problem of applicants’ spouse after the death of RM applicants. Finally, the “commercial” model could connect more social welfare resources for the elderly to develop a better RM system.