Discussion On The Securitization Of Housing Mortgage Loan In China

Since 1960s, as one of the major forms of financial innovations, asset securitization has developed greatly. It was initiated in American, and then made great development in other developed countries. As mortgage-backed security(MBS) is a major form of asset-backed security, asset securitization began with mortgage-backed securities in American and other developed countries. In our country the demand of mortgage loans has been increasing. In order to meet the demand of mortgage loans, we should also apply to the innovation of the MBS. Meanwhile, in order to gain the initiative in this field, it is urgent for us to study the issue of starting MBS. So comes this thesis.This paper consists of four chapters. Chapter one analyzes the necessity for China to develop MBS at present. First explain the characters and principal of MBS, then point out the necessity of opening it. Chapter two studies the feasibility to develop MBS for China. First prove that we possess certain conditions for starting MBS now such as the large quantity of mortgage loans and the demand of MBS. Then present the obstacles of opening MBS and point out the innovative measure. As the key part of the paper, chapter three intends to make reasonable design for opening MBS in the future. This chapter includes the setting up of relative institution, the kinds of MBS and the risk management. Chapter four analyzes the case of MBS transaction. It describe the restructure of cash flow, rate pricing principal, credit enhancement ,term and size of securities. It draw an conclusion that securitization is the process of profit redistribution in the bank, securitization company and investor.