Individual Housing Mortgage Prepayment Behavior And Governance

Prepayment increases the uncertainty of cash flow of mortgage-backed securities (MBS) and influences the pricing of MBS. Therefore, the research on prepayment has been always the emphasis of foreign scholars.In the past, no fixed interest rate was used for the mortgage in our country and so the risk of prepayment was not serious and there was not enough research on this subject. But as the appearance of floating interest rate in the mortgage this year, the risk of prepayment is becoming more and more serious. Therefore, the research on prepayment becomes very important and urgent. Based on the previous research and combing the situation of our country, this article elaborates prepayment.This article is divided into four chapters.The first chapter includes three sections. The first section introduces the previous experimental research on prepayment, including Goldman Sachs Prepayment Model, CG ? Model and etc; the second section analyzes the factors which affects prepayment. The third section introduces some research on the fine of prepayment.The second chapter includes two sections. From the angle of contracts, the first section introduces the characteristics of mortgage. The second section recommends the house-mortgage loans of the United States and then expatiates the problems of house-mortgage loans of our country.The third chapter first analyzes the factors affecting prepayment in our country which is different from the factors in the United States and analyzes the risk of prepayment. Prepayment will increase the uncertainty of cash flow and so make the pricing of MBS more difficult. Besides,...