Research On Credit Risk Prevention Of Securitization Of Housing Mortgage Loan In China

With the continuous development of financial reform,Mortgage-Backed Securitization gradually became one of the most popular issues in financial innovation area. With many problems and potential risks.Mortgage-Backed Securitization is still in its infancy in China.So the risk prevention of Mortgage-Backed Securitization have gradually become the issue of the financial area.Since the reform and opening up, China gradually become the world’s second largest country of economy. With the continuous development of China’s economy and real estate market, the size of mortgages is growing year by year.With short-term Prosperity of mortgage market,credit risk of Mortgage-Backed Securitization may be hided.But in recent years,with the growth of China’s economic slowing down, inventory of real estate accumulating,the non-performing loans of banks increasing,potential risks of Mortgage-Backed Securitization may reveal.The painful lessons of the subprime crisis always reminds our country to be alert to risk of Mortgage-Backed Securitization.For the healthy development of financial market.it is necessary to do prevention on Credit risk effectively.Thus,risk prevention of Mortgage-Backed Securitization has become the subject of this article.Firstly,this article analyzes the development process of Mortgage-Backed Securiti-zation,the necessity and feasibility of Launching Mortgage-Backed Securitization and process status of Mortgage-Backed Securitization in China.and the problems of lack of motivation, lack of a sound personal credit mechanism,lack of authoritative credit rating agencies,imperfect development of Intermediary service organizations, the absence of institutional investors.Secondly,this paper describes the main credit risk of Mortgage-Backed Securitization and make detailed analysis of two main credit risk-default risk and prepayment risk from qualitative and quantitative perspective.Thirdly, this article discusses the development process and the causes of subprime crisis,and then summarizes valuable reference and inspiration of the whole subprimecrisis,from aspects of stability maintenance of the macroeconomic, reasonable regulation of real estate,the improvement of the credit rating system, the risk awareness of commercial bank,the supervision of Asset Securitization.Finally, in view of the actual situation of Mortgage-Backed Securitization in China,the paper respectively puts forward reasonable advices and countermeasures on prevention of credit risk from point of view of the default risk,prepayment risk,and other credit risks.