China's Housing Mortgage Loans Securitization Issues Discussed

Housing mortgage loan-Securitization is a Hotpoint into international financial innovation. It is helpful to dredge the canal of housing finance, to improve liquidity and increase adequatance for domestic banks and fill leading gaps for provident fund, to deepen financial market and activate financial innovation and perfect financial infrastructure.Housing mortgage loan-Securitization is the trend for the development of real estate and finance in China. From a macro-view there is a magnitude potential in our reality and custom market. Our government makes enlargement of inter-demand be an economic policy which plans to carry out housing mortgage loan to promote housing consumption that will bring along the adjustment of industrial structure establish the new economic increasing point make high rising in economics. From a micro-view in personal housing mortgage loan, the bank faces or will face the shortage and singleness of the fund , risk concentration ,small size ,short term and bad liquidation and so on. The way to resolve the shortage of the fund is financial directness in housing securitization. Housing funding is the primary way to satisfy the funding needs. The issuance of Mortgage-Backed Securities(MBS)is one kind of the securitization and it can bring many other benefits to commercial banks and MBS investors. So that is to say the policy of housing mortgage can overcome the limitation in practice which is in favor of setting up a relative perfect housing financial policy.From the theory and operating mechanism of the housing mortgage loan- securitization, the paper analyzes the practical meaning of the housing mortgage securitization idea. There are three basic conditions that we need to realize our securitization, find and deepen the condition of securitizaton. We get that the obstacles of securitiation first lies in that the commercial banks do not transfer their mortgage loan solicitously ,second the interest rate is not in open market, and third,the limitation of the law. So on this basis we explore the point and structure of the realized securitization. Finally from MBS we put forward the idea of housing mortgage loan securitization and corresponding policy suggestions.