Analysis On Legal System Of Risk Prevention In Mortgage-Backed Securization

This dissertation is a study of the legal system of risk prevention in Mortgage-Backed Securization.Mortgage backed securitization(MBS) is the act of issuing securities backed by independent mortgage assets as credit foundation and the structural funding arrangement using the future stable cash flow generated from those assets as the source of security payment.It can achieve risk remoteness from the original creditors through the redistribution of risk and revenue using certain transaction techniques,and convert to beneficiary interest or bond basing on the future cash flow of assets pool. Many developed contries and regoins take MBS as one of the most important result of financial innovation in 21^st century,and carry it out successifully. Considering the rapid development of the country' s mortgage loan business the increasing liquidity risk of banks,China is supposed to carry out MBS at larger scale in the long-term.Therefore,it is necessary to study the risks in MBS and give suggestions on how to prevent those risks in legal perspective. This dissertation is divided into four chapters.Chapter one introdues the basic theory of the legal system of risk prevention in MBS,including the concept,attribute and process.It is the foundation of the whole paper.Chapter two analyzes in details the development of MBS markets in U.S.and Hongkong Region,including the origin,developing mode,and especially their way of risk management.The emphasis of this chapter is the enlightment of U.S.subprime mortgage crisis in secondary market for China.Chapter three is the main part of the dissertation.This part discusses the feasibility of development of MBS in China,and introduces present situation of risk prevention of MBS in our contry.Following up is the part researches in detail the risks during the procesing steps while carrying out MBS from legal perspective,including the legal qualification of the joining parties,the establishment of SPV and the legal risks caused by prepayment and so on.Chapter four gives some recommendations on how to control the above-mentioned risks and build up feasible legal system of risk prevention in MBS.