China’s Mortgage-Backed Securitization Regulatory System Research

Mortgage—Backed Securitization(MBS) is a great innovation in the financial markets of the world, it injected new vitality into the financial industry. The United States is the earliest country which implemented Mortgage-Backed Securitization, and also the most developed country in securitization. But, even though the United States has implemented Mortgage-Backed Securitization for nearly half a century, operations are quite mature, the securitization deal of high-stakes are threatening the The stability and safety of the financial system constantly. In 2007, the financial crisis erupted the United States in cases that there are great flaw in the supervision system. Caused trauma to the economy of America and the world. But at the same time, we can’t deny that securitization had brought innovation vigor to the economy of the world because of the financial crisis.Therefore, tighten supervision over Mortgage-Backed Securitization is the only way to ensure that the Financial industry will develope steadily.Our country had practiced Mortgage-Backed Securitization business since 2005.And the regulatory system of Mortgage-Backed Securitization is ever-improving, and some regulatory defects had already exposed in the process For example:Supervised pattern has been difficult to adapt to the needs of the development of securitization, the legal effect of Department regulations are quite low and so on.So,it is necessary to reform the supervision model and formulate laws and regulations of higher legal effect.Besides, we should establish comprehensive risk supervision system of Mortgage-Backed Securitization.This paper is divided into introduction, body and conclusions of the three major components, the body includes five parts.The first part analyzes the various risk factors of MBS business, which set a basic background for below MBS regulatory issues. It also analyzes the reasons for the outbreak of the financial crisis.The second part is the MBS regulatory theory which including regulatory theory, regulatory philosophy and goals.Third part of the MBS regulatory system of the U.S.. The chapters can be divided into two parts, the first section focuses on U.S. MBS regulatory system before financial crisis. The second part analyzes U.S. financial regulatory reform, MBS regulatory reform after financial crisis.The fourth part studies and analyzes international regulatory trends of MBS.Fifth Part focuses on analyzing improvement of regulatory system of MBS in China. Based on the above study, the author proposes a sound securitization of mortgage-related measures in the regulatory system.