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Legal Research On The Regulation To The Issue Of Mortgage-backed Securities

Posted on:2011-01-11Degree:MasterType:Thesis
Country:ChinaCandidate:S H QiuFull Text:PDF
GTID:2166360305481454Subject:Economic Law
Abstract/Summary:PDF Full Text Request
Mortgage-backed securities, as a form of financial innovations, are important to relieve the liquidity press of the bank, distribute credit risk and meet the increasing need for houses. Therefore, mortgage-backed securities are issued all over the world, attracting broad attention from different countries.The development of the financial innovation needs efficient regulation. Due to backed on the future currency flow arising from the housing mortgage loans, mortgage-backed securities undertake the risks of the real estate market, the housing mortgage loan market and the stock market, which need strictly regulation. The issue of mortgage-backed securities, linking banks, special purpose vehicle and investors, is the core of mortgage-backed securitization. And so, the regulation to it is an nessesary part of the regulation to mortgage-backed securities. As the security backed on the credit of the assets, the regulation to the issue of mortgage-backed securities is special, which does not only lie in the regulator, the contents, the means, but also lie in the regulation of market access, information disclosure, and credit rating.Through the analysis on the nature of mortgage-backed securites, this paper proposes that the regulator of mortgage-backed securities should be an integrated department that is able to regulate the banks, the stock market, and the trust market. Considering the current situation of the regulation, the regulator to the issue of mortgage-backed securities could be instead with the regulator to the stock market. Howere, it should make efforts to improve the relationship with other regulators. Rule-based regulation to the issue of mortgage-backed securities mainly includes the regulation to market access, information disclosure, and credit rating, etc, which in this paper is discussed from the contents, the legal status and obligation of the regulatory object, and the duty for the illegal activities. Learning from US subprime mortgage crisis, subprime mortgage-backed securities should be taken into the risk-based regulation to the issue of mortgage-backed securities. To make the regulation more efficient, the emergency settlement power should be confered on the regulator. Finally, based on the deficiences in the regulation to the issue of mortgage-backed securities in our country, such as high market access, the unreasonable arrangement of regulator, and the imperfect rules for information disclosure, this paper puts forward suggestions to improve the regulation to the issue of mortgage-backed securities.
Keywords/Search Tags:Mortgage-backed Securities, Regulation of Market Access, Regulation of Information Disclosure, Regulation of Credit Rating, Risk-based Regulation
PDF Full Text Request
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