Study Of Personal Housing Mortgage Loan Risk Control Legal System

Since the 1990's, China's real estate industry has been an unprecedented rapid development, and the real estate finance industry began to enter the market-oriented phase. When the living conditions of residents has been improved and the national economy has achieved significant growth, the credit risk of real estate finance business brought by the great risk of the real estate itself is becoming increasingly apparent. The mortgage-backed loans is a main way, when the financial institutions issue loans, and the real estate mortgage-backed, as an effective way, has been widely used in the corporate finance, personal loans and so on, which have played an important role in protecting credit security funds. Currently, the price of commercial housing rise in current trend, taking personal housing mortgage loans to purchase houses has become a considerable choice to a lot of people. However, with the number of personal housing mortgage loans increasing, the risks of mortgage lending is gradually exposed.This paper analyzed and summarized the risk of personal housing mortgage loans and classified the risk. In other words, the risk is divided into horizontal and vertical risk categories. Horizontal risks include the risk from developers, the risk from buyers, the risk from bank itself, the risk from the loan itself, as well as other risks; vertical risks include the risk from pre-signing the contract of the mortgage of housing to individuals, the risk from signing the contract and the risk from signing the contract after and the risk from disposition of the mortgage property. Subsequently, the author studied and analyzed the causes of China's personal housing mortgage loan risk and pointed out that China's personal housing mortgage loan risks are divided into five main reasons:the lack of individual credit system, the legal system of housing assurance is not perfect, the relevant procedural law of mortgage is not completed, the risk-transfer system of real estate finance is flawed and personal housing mortgage loan business is lack in supervise. In these five areas, the author described the root causes of the risk of the personal housing mortgage loans from the deeper level. At the same time, this paper studied foreign advanced risk prevention system, especially to the produce, impact and response of U.S. subprime mortgage crisis, etc, with a view to benefit to the building of relevant institutions in China. Finally, on the basis of understanding the risks, analyzing the causes and learning from experience, this paper proposed the legal system of personal housing mortgage loans to prevent the risk of specific programs. From five aspects:building the legal system of personal credit, construsting the legal system of housing security system, improving the legal procedures system of personal housing mortgage loan, transferring the risk of personal housing mortgage loan business and bettering the system of the disposition of the mortgage property, this paper wish to improve China's personal housing mortgage loan risk prevention, point out concrete and feasible proposals to help promoting a further development of the prevention of the risk of personal housing mortgage loans.