Legal And Regulatory Issues Of Housing Mortgage Loans Securitization Research

Mortgage-Backed Securities (MBS) originates in America in the 1970s. With the competitive advantage of being able to increase assets mobility, reduce funds-raising costs and disperse risks, MBS has developed with the fastest speed and to be the most vigorous and advance financial instrument in the international capital market. However, with the following weaknesses as complicated trading structure, too many involved parties and legal ties, meanwhile, dispersing financial risks means increasing the transmission of the risks, so, MBS is likely to trigger financial risks. If without the regulation of law or in case of poor regulation, it will result in some negative effects, thus putting the financial market in great danger. Practically, lack of regulation in MBS in the US exactly illustrates this point. In present, China is carrying out the experimental work of MBS, However, the relevant legislative and regulatory system is still imperfect. It will not only restrict the rapid development of the market, but also very likely to lead to financial risks. As a comprehensive legal regulation can ensure the smooth development of MBS, therefore, China should improve the regulatory legal framework of MBS as soon as possible.In this paper, it firstly introduces the basic theory and the framework of MBS, then expatiates on the necessity of a MBS regulation system from the perspective of theory and practice respectively. In detail, for the theoretic analysis of the MBS regulation, it mainly introduces the general theory of MBS regulation. Meanwhile, it investigates the risks of MBS and the theoretical basis of MBS regulation as well as its legal concepts. It also analyzes the tendency of the currently undergoing financial regulation of MBS in the world. As for the financial regulation of MBS in practice, firstly, it introduces the development course and the legal regulation of MBS in The US. Through examining the cause of The US subprime mortgage crisis, it concludes some useful inspirations to the financial regulation of MBS in China. In the last chapter where the regulation of MBS in China is discussed, it emphasizes the importance of being established in accordance with the law. After briefly introducing the development of MBS in China and it current legal environment, it also analyzes the problems existed in the financial regulation of MBS in China. By learning the tendency of the currently undergoing financial regulation of MBS in the world and useful regulatory inspirations from The US subprime mortgage crisis, combining the practical situation of our country, this paper put forward the construction of a legal framework that fit the MBS regulation in china.