Personal Housing Mortgage Loans, The Risk Of Legal Control

Mortgage is one kind of consumer credit. There are many risks because of a lot of reasons. While it will bring theoretical and practical importance through study of mortgage.The risk of mortgage is a risk because of these reasons such as defects in a system of financial institutions, inexact administration, below standard management and inherent contradiction of mortgage. The risk of mortgage mainly has four major types: borrower's risk, development businessman's risk, guarantee's risk and bank's risk. To keep away of these risks is demand of security, steadiness and profit. Meanwhile it is an important target of financial legal system construction. However, there is no thorough and systematical research made by the circle of commercial law. Thus, the author would like to introduce foreign laws concerned and mortgage law by way of comparative law science and economics to attract the attention of law scientists.Borrower's risk means the risk that is formatted because of borrower's principal and credit. To guard against and dissolve the borrower's risk, we should emphasize guarding against and transferring the risk. First is of strength construction personal credit confirmation system and establishment guarding against risk mechanism. Great is of improving examination, especially paying attention to borrower's credit and management after loan. Second is of insurance. So the risk is undertaken by intermediary institution.Development businessman's risk means risk because of fraud. In order to control this risk, we should guard against and transfer the risk in the same way. Furthermore, the author put forwards some other safeguard procedures such as mortgage loan becoming securities and so on.Guarantee's risk means the risk that is formatted at the course of mortgage. To guard this risk has three methods. First is of keeping away over-estimating guarantee. Second is transferring risk through insurance. Third is innovating new sorts ofmethods to deal with guarantee.Bank's risk means the risk that caused by quality and ethics of bank's employees. To guard against operational risk, on one hand, we should strengthern internal management. On the other hand, we should perfect the legislation in order to beat increasing official commit.Finally, synthesize the whole argumentation of one, the author put forwards some suggestions of perfecting to mortgage law of our country.