Risk Analysis And Prevention Of Individual Housing Mortgage

At the beginning of the implement of reformation and ope ning policy, people of our country lived the house through the welfare of the government. 1998, the government decided to change the policy on housing because of the increase of population. From then on, real estate and finance cooperated with each other firmly, and individual housing mortgage increased quickly, the finance field named 2004 "real estate finance year". But, some problems and risk appeared while the housing mortgage is development, such as "fake housing mortgage", these kinds of problem disturbed finance market seriously. Real estate market is one market that has periodicity, individual housing mortgage has the following characteristics: long term, small amount, and lenders multiplicity. So it is a big challenge lor China commercial banks that are familiar with wholesale operations.Individual housing mortgage appeared in the finance field in Great Britain in nineteen century, it is one of important housing finance instrument in Europe and America at present, so the theory about analysis and prevention of risk is mature. This article introduces foreign theories and domestic theories on analysis and prevention of risk.This article includes four parts: first, the author gives the significance of writing this article, and indicates the advantage and disadvantage of the article. Then define individual housing mortgage and risk, in the third part, the author introduces six kinds of risk in detail: credit risk, guaranty risk, liquidity risk, interest risk, inflation risk and other risk, discusses the reason that risk arises, the reason arise from two aspects, one is the administration of commercial banks, the other is the constitution of economy. Finally, the author gives four methods to prevent the individual housing mortgage from risk: design new products on individual housing mortgage, build up perfect individual credit system, constitute insurance policy of individual housing mortgage and implement mortgage-backed securitization.