The Research On The Default Risk Of Personal Housing Mortgage Loans In China

Personal housing mortgage loans have been the most widely adopted way of loans supply in the world. In recent years, Chinese personal consumer loans market has got a rapid growth and the housing mortgage loans have become the biggest one of it. However in 2007, a credit crisis happened in U.S.A. which had given a tremendous influence on global stock market and other capital markets. In terms of the three factors above, the default risk management of housing mortgage loans have gotten more and more attention from domestic and abroad areas. As for it, the research on the issue is very important in theory and practice senseAt first, this paper aims to give a definition on default behavior and default risk by summarizing the domestic and abroad papers on this title, and explain the reasons of default risk's arising causes from different academic views. On the basis of in-depth analyzing the foreign countries' general experiences on default risk management of personal housing mortgage loans and the excellent operation mechanism and the cause of credit crises in U.S.A., considering the Chinese actual situation, the outstanding experience and profound lessons which should be learned have gotten. In next, taking Guangzhou for example, analyze and estimate the causing probability of forced default risk and deliberate default risk by using relative theories and data. Finally, according to actual situation of Chinese personal housing mortgage loans market, it is advisable to make some suitable default risk management and prevention measures.