Mortgage-backed Securities Of Legal Research

Mortgage Backed Securitization(MBS) has been one of the most important innovations in financial area in the past 30 years. It developed rapidly in the developed countries and became to be a global trend. With economic development and deepening of the reformation of housing system, people's income level was improved. The housing industry mostly composed of real estate has been to one of the backbone industries in national economy. And housing consumption is being to be a new hotspot in consumption market. In order to satisfy the demand for substantive capital and distract fluid risk in commercial bank, MBS would be the choice of our commercial bank inevitably. By the end of 2003, the balance of personal housing loan in our country has exceeded 1000 billion RMB and formed a large scale. At the same time, the four Asset-Management Corporation has accumulated experiences from the process of disposing of badness assets. Time is up for developing MBS in China.On March 21st, 2005, the People's Bank of China announced that the experimental units on Asset-Backed Securitization (ABS) start up. China Development Bank and China Construction Bank will be as experimental units to carry through ABS and MBS respectively. Along with work of the experimental units, there is broad consensus in the financial theory circle and practical circle of our country on the issue that MBS will be as an opening for ABS. But realistic law system and other surroundings restrict development of MBS. We should mature law and other systems to make a perfect environment for development of MBS.This thesis analyses the function mechanism of MBS and explores the restrictive factors on fully developing MBS at present. On the base of using for reference on experiences of MBS in overseas, this article tries to make exploration of developing MBS in China on law issues. At the end of it, it also gives some simple suggestions on it.