Improvement Of The Mortgage Market Research

At present, the house industry has already become the key industry of our national economy. With the industrialization of our country and quickening of the urbanization process, its role in our country's economic development and position are strengthened day by day. The development of the house industry is due to the support of the finance, especially more obviously in the field of house consumption. The home mortgage is playing a more and more important role in increasing the goods consumption of the house , promote the house industry with national economic developmenting.The home mortgage market is a kind of markert in that the home mortgages are created and transfered. The whole home mortgage market is formed by two sub markets , namely the primary market and the secondary market. There are two kinds of ways to form the secondary market ,one is not by securitisation, the other is the securitisation secondary market. Because the securitisation form has higher liquidity, thus it becomes the main way of forming the secondary market. The development of the primary market is due to the support of the secondary market, the secondary market plays a key role in dissolving the market risk, opening up the financing channel and ensuring finance and national economic stability, conversely, the development of the secondary market must be based on primary market too, the primary market take effects on risk control and the securities pricing.The home mortgage market of our country reforms in the housing system and takes shape and develops gradually in the financial development of the house entirely. The branch of Chinese Construction Bank Shenzhen granted the first sum of personal home mortgage in 1985, have opened the prelude of the market of home mortgage of our country, but of our country home mortgage market obtain substantive great development begins from the latter stage of the 1990s of last century really. Whole scale of home mortgage increase from one 20 billion at that time to almost 18,000 billion ,totaly the annual growth rate is above one time.With the flourishing of the home mortgage of our country, a great deal of questions have appeared . Among them the most outstanding one is that the home mortgage market has structural defects , namely only exists the primary market without the secondary market. This brings two great main consequences : First, the enormous risk in the primary market is unable to disperse through the secondary market. If the risk accumulates the normal running that will influence the commercial bank seriously to certain extent, bring danger to national economic stability. The thrifts crisis happened in the last centuries sixties in America is the best lesson. Second, commercial bank is unable to utilize secondary market to open up a financing channel to obtain more capitals .Thus itlimits the enlargement of the market scale. And, there are many problems in the primary market,such as the loan variety single, loan management unstandard and low loan risk control ability. In addition,market intermediary organizations develop slow and social credit system and law system exisit many problems.Similar to development of home mortgage of our country, above-mentionedproblems appear in various degree in the representative development of American and Canadian home mortgage market in the world. The development experience of these two national home mortgage markets has important meanings in perfecting the market of home mortgage of our country. The most important enlightenment is that the government must play the kye role in the development of home mortgage market .The America home mortgage market give us a good example." The stones from other hills, can attack the jade ". To perfect the home mortgage market of our country should take the corresponding policies and measures:First of all, in the primary market in order to increase home mortgage supply we should make efforts in two aspects. On one hand, the government should continue to deepen the state-owned bank reform and encourage the private-owned bank operation;on the other hand,the bank should create the new home mortgage products.Second, Setting up the market risk monitoring and controling syetem is to manage the market risk and make good prepairations for developing the secondary market.Firstly,we should pay more attention to the change of law and economic enviormentSecondly, the government should improve the risk managerial ability of commercial bank.Thirdly,the society credit syetem should also be accelarated.Last,the marke supervision validity should be strengthened.Third, we should develop the secondary market of our country actively. Using international experience for reference, it is mainly to implement the securitisation to set up the scondary market. At present, the State Council has already sanctioned the securitisation experiment practise and already take substantive paces in securitisation of the home mortgage. But there still have some obstacles to launch the securitisation .The greatest obstacle is the contracdiction about laws and regulations, hi compare with the special purpose company mode, the trust mode can overcome the law . It is a realistic mode that our country launched the securitisation of the home mortgage.Fourth,the government should play more important role in the home mortgage market.It can be detailed as follows:firstly,the state-owned ganrantee and ensurance organation should be built. Secondly,such as GNMA,the similar organation should be established. Thirdly,the government should take more effots to set up a sound law system of the home mortgage market.