Legal Study On Mortgage-Backed Securitization In China

Mortgage Backed Securitization (MBS) means financial institutions such as commercial bank transfer the creditor's right of mortgage to a particular professional institution such as a securitization institution who will issue securities on a capital market based on a the creditor's rights it purchased. MBS is also the most important and essential form of Assets securitization.Asset securitization, as the most important financial innovation, comes from the combination of security skill ramification and financial engineering skills. It sprang form America to all over the world. As the most important financial innovation and financial instrument, Asset securitization issue the ABS by using the assets pool, combining the commercial bank and the invest bank. Though there is no uniform definition to it, it is usually consider a process in which the commercial bank trust the assets pool to the SPV, then the SPV issues the ABS. MBS has a significant meaning in developing China. But the legal system in China may play a negative role. And MBS involves various aspects such as security, assurance, bank financial. It needs a fine legal system to mediate the legal relationship. Though the legal system has been made, it isn't fine enough. The paper suggests for the legal problem by analyzing the MBS in the world. This text has seven sections:Section one is the introduction. It is the introduction from the subprime lending crisis to the MBS. And legal relation with the MBS has been told.Section two is the generality of the MBS. Firstly, it is the definition of MBS and the process of MBS. And the second, the legal relationship of MBS.Section three is the legislation status of the world. By analyzing the legislation status of the MBS in the world, tell the significance and some experience we can learn from in China.Section four is the legislation status and the problem of the MBS in China. First, it is the legislation status of the MBS in China. Then ,it is the legal study of the problem of the MBS legislation in China.Section five is the suggestion of the MBS legislation in China. One of them is making a special law of the MBS.Section six is the conclusion. It is the summary of the paper.