Public Housing Reserve Fund Risk Analysis And Guard

The public housing reserve fund is the main source of policy oriented housing capital. It is also the most important part of housing reform and the guaranteed housing system. There has been great achievement since the establishment of the fund, however, the public housing reserve fund is still in its development period. There are still many issues in the system. For example, since the entity that manages the fund is not a financial company, many of the government financial regulations don't apply to the fund, so there is not a good mechanism established to monitor the financial risk which is required for all financial companies/organizations. Some fund managers don't even really understand the potential risk associated with fund management, which makes it imperative to improve the risk management in future housing fund management.The growth of public housing reserve fund and the longer amortization period of housing mortgage bring more risk to the housing fund management. This paper tries to analyze various risk potentials in the housing fund accumulation, management and utilization and give recommendations to improve the risk management.The first chapter is risk classification. With a brief introduction to the government regulation of the housing reserve fund, this paper classifies risks of a housing fund into accumulation, utilization and management.The second chapter is a systematic analysis of the risks. The housing fund is supposed to help making housing mortgage more affordable and considered to be a benefit for the public, but it hasn't worked as good as expected in terms of fund accumulation. This paper tries to identify the underlying reason. The risk of utilization mainly lies in mortgage default risk, this paper gives an in depth analysis from different aspects of the mortgage default risk. It also identifies the problems and issues within the fund management.The third chapter proposes risk guard mechanism based on the analysis of chapter...