Research Of The Securitization Of The Housing-mortgage Backed Loans In China

The securitization of housing-mortgaged loans, a new type of housing financing regime integrating housing financing with investment, is extensively adopted by many countries and regions in the world. In China, the securitization of housing-mortgaged loans has become heatedly discussed topic. The China government and the banking circle hope to raise the efficiency of the housing financing regime, improve the banks' asset quality and to diversify the risk, so as to promote the development of real estate economy and improve people's housing conditions.The securitization of housing-mortgaged loans comes from MBSs (Mortgage- backed securities). MBSs are a specific type of asset-backed securities(ABSs), which are claims on a stream of cash flow from financial assets,usually in the form of receivables. MBSs are backed by a stream of cash flows from mortgage credits provided by an originator (usually a bank) MBSs are an effective tool for balance-sheet management for originating institutions, which can take the securitized loans sold without recourse off their balance sheets.In western world, MBSs has a longer history. This paper analyses the MBS' development history in western world, especially on how the western government face and solve the problem during the process of MBS. It learn the lessons and experience. Analyzing the China's securities and financial reality, this paper think the securitization of housing-mortgaged loans ,one hand, it can be processed in China because China have been formed a soil; on the other hand, it must be a systematic engineering. The securitization of housing-mortgaged loans involves many social parts( e.g. government,bank,insurance etc.) The securitization of housing-mortgaged loans needs a social professional intermediary service system including credit-rating, insurance, accounting firm and law firm, gurantee, investment consultation and public notary. At first, This paper discuss the relation between the securitization of housing-mortgaged loans and asset-backed securities. through the relation, this paper uncover the financial reality in China, express the problem and difficulty. Through comparing the foreign experience and the China reality,this paper think the securitization of housing-mortgaged loans is reasonable but the road is a litter rough. China government must cultivate a good soil and change its function with the process of the securitization. For solving those problem and difficulty, this paper give some advice and measures. It analyses every corresponding part's function, problem and give some reasonable advice. All in all,this paper think the securitization of housing-mortgaged loans can be processed successfully if every social parts can cooperate well.