Securitization Of Housing Mortgage Loans Feasibility Analysis And Action Is Discussed

Mortgage backed securities (MBS) is one of the most significant financial innovations in the international financial field in 20th century. It has now spread worldwide since it came into being in 1970's in U.S.A. According to the development of foreign housing finance, MBS is the general tendency of housing finance in China. The execution of MBS in China will be the necessary selection as continuously enlargement of the housing mortgage loans in China.This paper carries on the analysis in detail on the execution of MBS in China on practice and theory. At the same time, this paper also points out the feasibility of the execution of MBS in China and the concrete operation means. Moreover, it puts forward some ideas and proposal to the execution of MBS in China.First, this paper expounds the necessity of execution of MBS in China. It carries on the importance of MBS to commercial banks and national economy in China and the deep significance of the execution of MBS in China. Second, this paper discusses the feasibility of execution of MBS in China in detail. It discusses the quantitative analysis of economically feasibility and the existing conditions and the obstacles in the execution of MBS in China. Third, on the basis of the analyze of the existing conditions and the obstacles, this paper expounds the concrete issues of the execution of MBS in China. It discusses many important operational issues such as the setting up of SPV, the selection of securities, credit enhancement of MBS and the taxes and the accounting issues of MBS, the operation of experimental pattern and so on. Finally, this paper presents ideas and proposals to the execution of MBS in China, including the improvement of primary market place, the development of intermediary organizations and the perfection of laws and regulations, quickening the training of qualified personnel, etc.