Research On The Legal Regulatory System Of Mortgage Securitization In China

Mortgage securitization, in order to mortgage-based assets, relying on future mortgage security cash flow, through a series of credit enhancement, issued the corresponding securitization products. It will increase the market resources liquidity, provide investors more diversified investment options,and promote the economic prosperity and development.Mortgage securitization, in order to mortgage-based assets, relying on future mortgage security cash flow, through a series of credit enhancement, issued the corresponding securitization products. It will increase the market resources liquidity, provide investors more diversified investment options, and promote the economic prosperity and development. As a kind of financial innovation, mortgage securitization has a profitability arid risk characteristics. The development of mortgage securitization process, in particular the lessons of the sub-prime crisis, certificates the market can not effectively control it, and government's regulation is necessary. This paper is going to discuss how to construct a reasonable mortgage securitization legal regulation system in China, to achieve a balance between market freedom and rules.This paper is divided into five parts.The first part is an introduction of the research background and significance, and finishing the previous studies.The second part is the theoretical basis for the paper, through discussed the risk generation and expansion processes of mortgage securitization, identified which areas require government regulation, and which market participants should be a regulatory target. This made a foundation for the discussion of the regulatory regime. This section also discusses the theoretical basis of the mortgage securities regulation. As the market and the government's both failures, it is necessary to establish a balance between the market's self-regulation and the government's administrative regulation. This would be realization both freedom and order, through some reasonable regulatory principles set out to achieve this philosophy.The third part presents the discussion of current development of mortgage securitization in China, analyses the inadequate of regulatory regime, including the backward of regulation philosophy, the law missing, the adapting of regulation framework, and inadequate in regulatory mechanisms and objects. In the early stage of mortgage securitization development, China should accord with ourselves conditions, complement the related regulatory system and reduce the likelihood of the risks before they occur. To this end, it is necessary to refer other countries experience in mortgage securitization regulation.The fourth part through the comparative study to analysis the characteristics of the foreign mortgage securities regulation system, and provide a guideline for our system improvement.The fifth Part is from the perspective of sub-prime crisis, to discuss the new revelation of mortgage securitization regulation.The sixth part is the center of this paper. To all the preceding analysis and the specific conditions of our country, article recommends some proposal for our country's mortgage securities regulatory system designing. Specifically, including the improvement of the monitoring philosophy, the update of regulatory perspective, sophisticated regulatory coordination mechanism, the improvement of information disclosure mechanism, strengthen market rating system.