Research On Risk Management Of Individual Residential Mortgage Of HH Bank

At present,China's real estate market has become increasingly prosperous,especially in the past two years,the real estate industry has ushered in a new round of the boom.The property market has brought a huge increase in individual residential mortgage of commercial banks.Individual residential mortgage's rapid accumulation,soaring housing prices,real estate speculation phenomenon emerge in an endless stream and many uncertain factors in the future housing market price trend have all greatly increased the risk of individual residential mortgage of commercial banks.This paper studies the risk management of individual residential mortgage of HH bank after looking into a lot of relevant references.Based on the rational default and passive default theory,asymmetric information theory,the comprehensive risk management theory as the theoretical basis,using literature analysis,case analysis and empirical analysis methods,analysis the status of individual residential mortgage in HH bank and the its existing risks and problems.In the part of empirical analysis,this paper sets up an analysis framework from four dimensions as the borrower characteristics,loan characteristics,property characteristics and external economic characteristics.Combined with the relevant data of the individual housing loan business in HH bank,17 factors as variables have been chosen: gender,age,residence,marital status,occupation,education,family monthly income,monthly payments and the monthly repayment income ratio,loan amount,loan term,loan to value,repayment methods,the value of real estate,property area,housing price per unit area and housing price index.Based on a quantitative and descriptive analysis of variables,using the factor analysis method of "reduction" of each variable,the paper finally extracts 7 common factors and then uses two classification logistic regression analysis to construct the regression model.Through the final regression analysis,this paper discovers that the family financial burden factor,mortgage factor,occupation & education factor and housing price index factor have more significant affection on the risk,while residence,marriage and gender factors are also influential,but in a less obvious way.Through the analysis that how different factors have effect on the risk of individual residential mortgage,the paperfound that these factors are different but correlative in the same time.So,the cause of risk is not a single factor,but the combined effect of multiple factors,resulting in the likelihood of occurrence.Therefore,HH bank should fully consider the influence of various factors in individual residential mortgage,especially focusing on the dynamic status of family financial burden,loan amount and so on on order to have a more accurate and comprehensive consideration,so as to improve the credit quality and reduce bad loans as much as possible,then finally the paper puts forward countermeasures and suggestions for HH bank.