China Housing Mortgage Loans Securitization Research

Mortgage securitization is the headspring of the energy of real estate industry. From the evolution of mortgage securitization in Hongkong and some foreign countries, mortgage securitization is almost the only financing approach for people to realize their housing dream. MBS has improved the liquidity of mortgage loans, broken capital's area limit and machine limit and otherwise. And MBS is looked as the adamant backing for mortgage loans. Mortgage securitization is currently an important topic with economic theory and real estate studies in China, and there is much study on theory and practice of securitization. Based on the analysis, this paper focuses on the special problem of the actual securitization operation in China. And I design a simple framework in Shanghai according to Chinese system circumstance character.This paper is divided into five parts.The introduction of the paper evaluates the importance of studies on mortgage securitization in China and indicates the significance of this paper.Chapter one elaborates on the produce and actuality of the mortgage securitization. Some lessons are also drawn from the evolution of mortgage securitization. And these lessons are important to the introduction of mortgage securitization in China in the future.Chapter two is the theory backdrop of this paper, which expounds the most basal principle about mortgage securitization. To understand MBS from essence, firstly I introduce its five drives; then I explain the basic information about MBS, such as its participant, operational steps, varieties and risks etc, which provides a model for China's mortgage securitization in the future.In chapter three I analyse the four difficulty of issuing MBS in China, which is the emphases of my paper. Firstly with the character of mortgage securitization, I give some ideas about SPV; secondly I make a detailed study on the weighing measures of prepayment, its influencing factors, and its meaning for the cash flow of MBS.Thirdly I introduce some ways about how to fix a price of MBS, the preparation of the building and development of the secondly market. Then I make a detailed comparison of relevant laws, taxation and accounting problem between China and foreign countries.Chapter four designs a simple framework for issuing MBS in Shanghai. On account of China's background, it provides flow of mortgage securitization, product design and price model.The feature of this paper is the combination of theoretical analysis with practice study; the using of mathematic tool to solve frondose problem. From the structure arrangement, the emphases of this paper is trenchant. And this paper is of practical value because my study is established in reality.