Housing Mortgage Loans Securitization Research

This dissertation is a study of China's residential mortgages securitization. Residential mortgages securitization is the mother of all securitizations. Residential mortgage-backed securities (RMBS) are generally passed through securities or bonds based on cash flows from residential home loans, as opposed to commercial real estate loans. There are two very strong reasons for RMBS being tuned to securitization: one, the long maturities of residential mortgages, and two, the fact that mortgage lending is backed by charge over real estate, which is a strong asset-backing enabling the investors to take an independent exposure on the receivables. In China, The rapid development of the country's mortgage loan business and the increasingly shortening terms of bank deposit savings require a secondary mortgage market to increase loan liquidities. Chapter 1 introduced the basic concept and process of securitization. The two typical securities -- mortgage backed securities(MBS) and asset-backed securities(ABS) are analyzed. To help you know more, this chapter discussed in detail the characteristics of securitization of residential mortgages models in the U.S., Canada, Hong Kong and Australia in the perspective of international comparison, and their implications for China. Chapter 2 is the main part of the dissertation. The necessity of securitization of residential mortgages in China are studied. This necessity are due to three sections. The first one focuses the features and tendency of Chinese credit asset, such as a lack of the liquidity, the mismatch between the mid and short-term deposits, inefficient usage of credit asset and a rapid development of residential mortgages. The second one focuses development of bond market. The third one focuses the reform of residential system in China. Chapter 3 discusses policy recommendations. It is noted in this chapter that who will act as the guarantor and whether to establish a special purpose vehicle (SPV ) . For this purpose, it is suggested that: (1) the government should draft qualifications for guarantee parties to ensure the legality of the financing process. (2) the supervision and administration of loans and the clearance procedures should also be standardized. (3)an effective legal framework and complete set of legislation and policies on housing financing is needed to standardize financial services...