Reverse mortgage is attracting more and more people’s attention as an important financial instrument nowadays. It has been developed quite well by countries such as USA. Taking the practice of reverse mortgage in USA as reference, this paper explores the development and improvement of reverse mortgage in USA. In addition, it discusses the current reverse mortgage insurance launched recently in China as well as the application of Black-Scholes-Merton formula in the pricing problem. Finally it puts forward recommendations according to local situation for better improving reverse mortgage.
