Research On Mortgage-Backed Securitization And Its Application In China

This dissertation is a study of China's mortgage-backed securitization. Mortgage-backed securitization is the source of all securitizations. Mortgage-backed securities (MBS) are generally passed-through securities or bonds based on cash flows from residential home loans, as opposed to commercial real estate loans. There are two reasons for MBS being tuned to securitization: one, the long maturities of residential mortgages, and two, the fact that mortgage lending is backed by charge over real estate, which is a strong asset-backing enabling the investors to take an independent exposure on the receivables. In China, The rapid development of the country's mortgage loan business and the increasingly shortening terms of bank deposit savings require a secondary mortgage market to increase loan liquidities.Chapter 1 introduced the basic theory of Asset securitization and MBS, including the concept of Asset securitization and the process of MBS. It will be the foundation of the next chapters.Chapter 2 analyzes in details the MBS market in US. The emphases of this chapter is the two typical MBS products—the Pass-through securities and the collateralized mortgage obligations(CMO),these two products are the main products in US MBS market. The pricing of MBS is studied in this chapter.Chapter 3 is the main part of the dissertation. The development of MBS in China is researched, including the precondition of developing MBS in China; the necessary step in developing MBS in China and the precept which can put MBS into practice. It is noted in this chapter that who will act as the guarantor and whether to establish a special purpose vehicle (SPV).Chapter 4 discusses the problems when develop MBS in China, like legal problem, tax bearing problem and accounting code. Then this chapter gives some policy recommendations, such as set up securitization framework as soon as possible; consummate mortgage loan market; consummate some law to fit MBS.