Study On China Housing Loan Securitization Risk Control

In recent years,as China continues to expand the scale of mortgages, much risk is concentrated to the banking system.So it is necessary to develop the asset securitization to disperse the risk. However, the outbreak of the credit crisis in United States warns us that it is important to have a foll understanding of the risk of asset securitization. And we must control the risk to ensure the healthy development of our mortgage based securities.At first,this paper describes the basic principles of mortgage based securitiesand makes a comprehensive analysis of the risk of mortgage securities.And then, analysises the reasons of the credit crisis in the USA in two aspects:one is the macroeconomic situation, namely, the cooling of real estate and the arrival of a cycle of increasing interest rate, resulting in the increase of the systemic risk in original assets pool.The another aspect is deeper than the first one, part of it is there exists some defects in financial asset securitization innovative tools, but the more important part is the USA have not done a good job in the process of risk control of the securities, as demonstrated by: original pool of credit risk assets, the bankruptcy isolation "second-tier" isolation risks, credit risks, as well as a serious level by the credit rating agencies risk. The article also analysises the reasons for these risks.Finally, this paper summarizes the reasones of the credit crisis in the United States, combines with th actual conditions of our country, and makes a deep research of the risk in the domestic mortgage securitization.First, comparing to the USA loan securitization, this paper makes a comprehensive analysis on the risk in the operation of the mortgage securities of China ,including the original asset pool risks and securities risks.Second, this paper proposes some suggestions about the controlling measures of these risks, including accelerating the establishment of individual credit information system, improving the law enforcement for credit enhancement, credit rating agencies to strengthen supervision.