Research On The Mortgage Backed Securities In Our Country

Mortgage backed securities (MBS) is one of the most significant financial innovations in the international financial field in 20th century. Now it has spread worldwide since it came into being in 1970's in America. According to the development of foreign housing finance, MBS is the general tendency of housing finance in China. The complete execution of MBS in China will be the necessary selection as continuously enlargement of the housing mortgage loans in China.First, this paper introduce the basic theory of MBS, such as its'conception, feature, function and operating procedure. For the need of housing finance market and commercial bank, it's necessary to execute MBS in whole country. The government encourages the housing industry to develop properly and healthily, housing mortgage loans grow rapidly, housing financial organizations are becoming mature, capital market is getting perfect, and a lot of laws and regulations about Asset Securitization are published. From all these facts, we can see it's a very advantageous situation to execute the MBS now. So the execution of MBS in China is of great feasibility. Shenzhen is a special financial zone of 20 years'histories. Its economic situation, investment environment, financial system, credit market have developed very successfully. So in this paper we use Shenzhen as a specific case to make an analysis.The paper also point out our country still has some problems need to be resolved, such as the commercial banks are unwilling to execute the MBS for their short-time benefit, the criteria of housing mortgage loans aren't standard, rate is not marketized, credit enhancement methods are very limited, risk control mechanism needs to be strengthened, intermediary organizations are not so sound, the professionals in this field is lacking etc. We should understand clearly that the problems maybe get some bad effects on the efficiency, but we can not deny the feasibility of execution of MBS.MBS came into being in America at the beginning, and also got some development in Canada and Hong Kong. This paper generalizes the MBS of these countries or zones, makes a compare and concludes the commons and enlightenments for us to make a reference. By absorbing their experiences, we find some ways to overcome the problems mentioned above. The ways include developing the primary market of housing mortgage loan, making the credit...