| Last decade has witnessed a rapid growth of mortgage loan in China, and the mortgage loan has already become one of the most important personal banking business in and a major source of profit for most Chinese commercial banks. Traditionally, the mortgage loans are considered to be safe and low risky as the estates secure them. However, the soaring of estate price brings the price risk of mortgage loan. Moreover, the banks are suffered by the risk of"fake mortgage", because they are disable to determine the quality of their clients, or whether the clients are truly willing to buy the estate. Today, the global financial crisis and the depression in local housing market stimulate some illegal persons to create more"fake mortgage", which will be a huge challenge for the banks.In order to control the mortgage risk as well as to secure the banking assets, the banks should have to operate more carefully and try their best to eliminate"fake mortgage".The writer had been in charge of mortgage loan in a bank for six years and now is working in the CBRC. With the help of what he learned from the MBA courses and his working experience, he introduces the basic situation and major character of Chinese real estate market and mortgage loan market, analyzes the risk character of"fake mortgage"through case study and statistic study, and gives measures against"fake mortgage". The writer believes:1. The risks on mortgage loan mirrors the risks on real estate market and other financial markets.2. Asymmetric Information causes"fake mortgage", so the banks should gather more information about their client.3. In order to catch information and evidence more efficiently, the banks should analyze the risk character of"fake mortgage".4. A better program may solve the problem. |
