China's Housing Mortgage Loans Securitization Model Study

The development strategy put forward by Chinese government has been acknowledged by all circles of the society that the housing industry is going to be developed into the pillar of the national economy, and the personal housing consumption is going to be cultivated as a new consumption hot spot as well as a new increase element for the national economy. As a result, the market of housing mortgage loan, as a key link, will play an important role in the development of the housing industry and the national economy.Referring to the experiences of developed countries, it is very possible that commercial banks will get themselves into trouble with floating risks alongside the rapid development of real estate industry, which will result in the weakening strength of the banking to support the development of the housing market. Mortgage-backed Securitization (MBS for short), a financial innovation that came into being in the end of 1970's, presents itself to us as a new solution with its unique financing structure design and extraordinary managing function of assets and liabilities.However, it's not an easy job to realize MBS in our country. Surely, the underlying reasons for that include those restricting elements concerning the perfection degree, system of the loan market, laws, accounting, and taxation as is know to all. But in the final analysis, the main reason is that we haven't yet found an operation pattern to start the market of MBS in our country that suits the situation of China.The theorists have been making plenty of research on the feasibility, necessity, countermeasures and advices on implementing our MBS, while the research on the operation patterns and specific operation projects is still inadequate. Currently, the projects for the patterns of MBS put forward by some cities and banks in our country are not standardized at all, and most of them, proceeding from the consideration of personal angles only, don't take the overall situation into consideration.Therefore, with such a background, taking the situation of our country into consideration, this article focuses on a research on the specific operation patterns, implementing projects, and existent restricting elements of MBS in our country on the basis of referring to the main operation patterns which are internationally popular.This article will try to make a systematic exposition in the following 4 parts:Part I. A theoretic analysis of MBS. First, a definition of MBS is given, and then a systematic analysis of the structural system and operational mechanism and corresponding effects of MBS follows.Part II. A comparison among different operation patterns of MBS all over the world. This part first introduces several kinds of operation patterns of MBS, and analyzes the background against which they came into being and their characteristics, and then sums up the experiences worthy of use for reference by our country.Part III. The selection of the operation patterns of MBS in our country. First, this part briefs on the development of MBS in China from both theory and practice perspectives, then analyzes thoroughly the suggested patterns of MBS in our country and gives an exposition of the advantages and disadvantages. Finally, this part puts forward the MBS pattern which is based on trust structure and fits the situation of China, and further demonstrates its feasibility as well as designs the implementing project (the operational main body, the operational flow, etc).Part IV. The analysis of the relevant problems concerning the MBS pattern based on trust structure. This part contains the analysis of the preconditions, restrictive conditions of implementation and the countermeasure selection.