Study On Mortgage Backed Security

After 10 years of discussion, the necessity and feasibility to carry out Mortgage Backed Security (MBS) in China has been proved and the country has been trying to do it recently although it is not so easy to do so. The thesis aims to analyze possible difficulties in the process of practicing MBS and to achieve better results in law system on the basis of criterion analysis method.As far as the form of Special Purpose Vehicle (SPV) is concerned, Trust-SPV is considered as the best choice for China's MBS and the Company-SPV is the alternative one, while the limited liability partnership-SPV is the one to be considered in the future. The appropriate organizer of Trust-SPV should be the trust companies while the Company-SPV established by the government would be the suitable one when taking the Company- SPV into consideration. What's more possible legal problems to be solved in establishing SPV and certain obstacles after SPV is set up are analyzed.Among the three ways of transferring housing mortgage loan, the author of the thesis argues that "Assignment" is the most suitable one. Then the changes of mortgage relations and the problems on exercising hypothec arising from the changes of the housing mortgage loan obligation relations are analyzed. The definition of bankrupt-remote is extended and the methods to realize the bankrupt-remote between capital pools and SPV, SPV and organizers, severs and capital for service are provided.The author of the thesis argues that there are no legal obstacles in credit enhancement. It should be pointed out that a single measure to enhance credit is limited and an integrated approach by combining various measures should be taken into consideration. Due to the fact that theoretical discussions on MBS and its operation are insufficient in China, traditional pricing method in MBSs evaluation is a hard but optimal choice. The author of the thesis claims that the...