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Research On The Models Of Residential Mortgage Insurance

Posted on:2010-12-04Degree:DoctorType:Dissertation
Country:ChinaCandidate:G YangFull Text:PDF
GTID:1116360272998315Subject:Civil and Commercial Law
Abstract/Summary:PDF Full Text Request
Residential mortgage has a long history. The business of residential mortgages has effectively stimulated real estate market and promoted housing finance. However, residential mortgage does not exist independently. The bank is subjected to all kinds of risk, such as the damage of the collateral estate and the mortgagor's default. Of all the methods of risk managing, insurance is undoubtedly the most effective one.Part 1 Residential mortgage originated from the United State. So the practice of residential mortgage in the United State is the most typical and representative. Through the history and practice of residential mortgage, we can see that it is really a valuable industry. As to the various risk in this industry, the most effective method of risk management is residential mortgage insurance.Part 2 Residential mortgage insurance works on the premise that the mortgagee has his interest in it. What is insurable interest? How does the mortgagee's interest develop and gain its independence? We can find the answer from the theories of insurable interest in the United Kingdom, the United States, German and Japanese.Part 3 Every country has found its way to solve the risk of damage of collateral estate. They formulated all the ideas in their Civil Law and Insurance Law. We call the ideas related with insurance lien insurance, which is the most important part of residential mortgage insurance. In this part of the thesis, I have set out the stipulations on lien insurance in different countries, and discussed on them comparatively.Part 4 There are six ways of lien insurance: subrogation right, lien on insurance claim, assignment of insurance claim, loss payable clause, mortgagee clause and policy covering mortgagee's interest. Subrogation right, lien on insurance claim, assignment of insurance claim and loss payable clause are not independent contract, but subjected to the main insurance contract. Their results are subjected to the deeds of mortgagor. If there was a mortgagor's default, the right and interest of mortgagee are not protected.Part 5 Mortgagee Clause is an independent and separate contract, which is not subjected to the deeds of mortgagor. Mortgagee Clause is practiced in the United States, Japan and many other countries. But the most successful one is the"Standard Mortgagee Clause"in the United States.Part 6 Policy covering mortgagee's interest is an independent and separate contract, which has nothing to do with the mortgagor. So it is the most complete method to protect the interest of the mortgagee.Part 7 Additionally, there are several insurance covering the default and life risk of the mortgagor. But they are not predominant, and are often annexed to the lien insurance contracts.Part 8 The residential mortgage insurance in our country is facing difficulties. How to solve these problems? I think the best way is to design an appropriate model of residential mortgage insurance. In my opinion, we should choose the"mortgagee clause"and to improve it in some aspects.
Keywords/Search Tags:Residential Mortgage Insurance, Insurable Insterest of Mortgagee, Insurance of Mortgage Right, Mortgagee Clause, Insurance of Mortgagee's Interest, Models of Residential Mortgage Insurance
PDF Full Text Request
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