Housing Mortgage Loans Securitization (mbs) Study: International Experience And Practice

MBS is the most important innovation in finance in the past forty years, it is always a hot issue in finance research. The purpose of writing this paper is that, researching MBS in developed markets and profiting experience from them so that prompt MBS practice in China. MBS start at 2005 in China., although it is developing quickly, it's also facing some difficulties and obstacles from both market basis and system environment, both the first market of mortgage loan and the second market. Then, research conclusions of this paper are listed following.First, we should learn from Hong Kong experience in MBS first market, and we should profit from U.S's experience in MBS second market and securitization system, and we should also learn from Japan's experience in establishment of securitization law. Meanwhile, it's more important to explore a suitable developing pattern with China's MBS practice.Secondly, In China, the housing price growth rate and mortgage loans interest rate both have significant on prepay risk of mortgage loans while residents' income level doesn't Thus, when assess the prepay risk of mortgage loans in China, we should pay high attention to these two significant factors, especially the latter.Thirdly, in the point of securitization system and market construction, the author suggest that, we should set up a risk-guaed mechanism of mortgage loans by establishing an insurance system with government characteristics in the first market; we should continue to expand MBSs scales, prefect credit rating services and cultivate institutional investors so as to improve MBSs' liquidity in the second market. We should also prefrct our securitization law system,personal credit system,account system and tax system.Forthly, recently, American subprime mortgage crisis brings us an alarm on developing MBS. Although we cannot veto MBS totally, we must put much emphasis on monitoring MBS's risk when it is used. We must strengthen to monitor each link and each participator in MBS in the future, especially guard and control the first market risk of mortgage loans.