Development Of China's Residential Mortgage Securitization Idea

The birth of housing mortgage securities deeply changed the traditional housing financial mechanism and the function of financial intermediaries. As a new financing mechanism, housing mortgage securitization reduced financial risk and financing cost of housing financial intermediaries, improved the structure of assets and liabilities, and raised their economic benefits. Through processing financial product, housing mortgage securitization diversified the risk of housing mortgage, raised the quality of mortgage pool, and many market participants as securities guarantors and investors got much benefit. In the progress of developing financial system in China, we should use the experience in other countries for reference, set up advanced financing mechanism and develop new financial instruments to ensure that our housing property and housing finance can attain long term, steady funds and supply sufficient loan funds for housing consumption. It's only a problem of time to develop housing mortgage securitization in China.This paper, using the experience of other countries for reference, considering the present situation in China, put forward the conception of developing housing mortgage securitization in China. The issue is discussed in four parts.Part one: Explaining means, process, and function of housing mortgage securitization, the kinds of mortgage securities, and discussing the prospect of housing mortgage securitization in China.Part two: Introducing the development of housing mortgage securitization in other countries, through comparison, obtaining the common law of the development of housing mortgage securitization in different country and the experience for us to refer to.Part three: Analyzing the present situation of developing housing mortgage securitization in china, including the elementary mortgage market, the mortgage guarantee and insurance mechanism, intermediary agency in capital market, potential investors, and law circumstance, tax, accounting etc.Part four: Depending on the analysis of the second part and the third part, putting forward the steps and strategies to develop housing mortgage securitization in China and the objective mode of housing mortgage securitization in China.