In its basic structure, the Reverse Mortgage (RM) is a contract where a home owner borrows a part or the totality of the future liquidation value of his home at the time of his death. The quantification of such future liquidation value and its valuation at the issue time is fundamental in the construction of the RM contract either in the perspective of the lender or in the one of the borrower. The paper shows how a neural network algorithm can be useful to the aim of forecasting the cash flows of the contract.
Reverse mortgages through artificial intelligence: new opportunities for the actuaries
di Lorenzo, EmiliaMembro del Collaboration Group
;Sibillo, MarilenaMembro del Collaboration Group
;
2020-01-01
Abstract
In its basic structure, the Reverse Mortgage (RM) is a contract where a home owner borrows a part or the totality of the future liquidation value of his home at the time of his death. The quantification of such future liquidation value and its valuation at the issue time is fundamental in the construction of the RM contract either in the perspective of the lender or in the one of the borrower. The paper shows how a neural network algorithm can be useful to the aim of forecasting the cash flows of the contract.File in questo prodotto:
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