A Study On Credit Risk Of Housing Mortgage-Backed Securitization

Securitization developed rapidly in the United States was based on the opportunity of success of Mortgage-Backed Securitization.In recent years,the American crisis of subordinated debt sounds the alarm for the global financial institutions,and the credit risk of Mortgage-Backed Securitization is thought provoking.China has been practicing the normative credit Asset Securitization business as the"pilot"at the end of 2005.In the initial stage of developing Asset Securitization,it is very necessary and inevitable to strengthen the risk prevention to promote the"pilot"Asset Securitization into the regular operation as soon as possible.In this article,First,after studying the situation and difference of credit risk before and after housing mortgage loan securitization,has managed the relevant information of the principles of Asset Securitization and the theory of risk.Then,classifying and further analyzing the causes of the credit risk of the borrowers and the third-party.The borrowers default is mainly due to the misplacing of the credit values and the information asymmetry,and the main causes of third-party breach of contract are the defects of the credit system and imperfection of techniques of the credit risk management.And,this article analyzed the causes of the crisis of Subordinated Debt in the United States from the bellowed six sectors:accumulation,dissemination,exposure, release,out of control and the deterioration of the credit risk.Based on the understanding to the basic principles of Asset Securitization and risky theory,this article summed up the experience of enlightenment that the credit risk transfers mechanisms in the process of Asset Securitization in America,and revealed the difficulty of the credit risk control and management.Finally,this article contributed the specific suggestions which will be the theoretical basis and idea to further develop the Chinese Asset Securitization by taking measures from the below points:constructing decentralization system and supporting system of credit risk,as well to strengthen the control system,to bring into the areas of credit risk control in the level of system and technology,the possibility of the borrowers default and third-party breach of contract.