Research On Prevention Of China's Commercial Banks' Mortgage Risk From The U.S. Sub-loan Crisis

Subprime estate mortgage called subprime loan, is a kind of mortgages that belongs to estate guaranty. In 1994, the coming out of this measure has promoted American's personal housing rate, successfully solved the housing problems for the low income earners. The law of supply and demand in the market economy may not violate, when the subprime estate mortgage has stimulated the housing market, the housing market also destroyed. Although the real estate has a sharp rising in the 90's of last century in America, both sides of the credit have a psychological base that is to sell the house to pay the loan finally to make sure not to compensate. But when the house price dropped, the real estate market was utterly routed, and finally erupted the subprime loan crisis.At present the over-heated real estate market in our country is obviously. In recent years, the house loan is regarded as the high quality loan project to develop by various commercial banks, and that caused the expansion of the house loan scales. When the central bank raises the interest rate unceasingly, the house price rise continues and surpasses the capacity of house-buyer, the violation phenomenon is easily to occur in this case. At the time, the banks that provide house loan will be the first Victims. Learning from American subprime loans crisis, our Commercial bank should carefully examining the question of house loan. The risk will come out of the subjective or the objective reason of the lender in our country individual mortgage. Zero first payment for the second-hand house loan is extremely similar with the American subprime loan system, and the spurious mortgage is one of the primary causes that bring huge risk to the house loan. We should regard the individual housing mortgage loan as one kind of high potential risk loan, while this kind of loan risk has the characteristics of periodicity and hysteresis.Looking from the relationship in present housing mortgage legal in our country, the main body of the housing mortgage mainly includes the house-buyers (i.e. loan applicant), the developer and the bank. And the house loan risk also mainly produces from it; the real estate simultaneously also bring the risk to house loan. To the loaner and the developer of apartments, they should use the credit rate industry, the insurance and the prompt monitoring management to control and prevent the risk both in the aspect of risk prevention and risk transfer. The banks should strengthen the legislation and its management, also to absorb the advanced experience of overseas. And to the pawn, should also reform the mortgage real estate method besides the use of spreading risk.