The Research Of Legal Risk Prevention Of Commercial Banks In Housing Mortgage

Mortgage was introduced into the mainland from Hong Kong since the 1990s, which is widely known and become the preferred way to purchase nowadays. Mortgage business is conducted in the bank extensively, which even become the main form of bank loans. It involves a number of subjects of legal relations and a variety of legal relations, at the same time, banks play a variety of roles in the mortgage lending, so banks have to face greater risks.In the mortgage loans, banks face the risks from the developers, credit risks of buyers and the bank’s own liquidity risks, and other risks due to changes of macro environment, such as policy, economy and so on. In addition, the special nature of the mortgage business would pose risks to the bank. The character of commercial banks determines that they earn their profits on the basis of risks, while the condition of preventing risks in the mortgage loans determines the merits of mortgage loans directly and affect the conduct of banks’deposit and lending business, which is even related to the survival of banks with high proportion of mortgage lending. However, late starting of the mortgage business in the mainland, inconformity of the existing laws, the delay in the establishment of the mortgage system, imperfect complementary measures lead to the condition that banks have to face huge risks. In recent years, non-performing loans ratio and default rates of commercial banks in the mortgage loans are rising constantly. The cases of banks charged customers’defaults also become regular. Nowadays, mortgage business is conducted extensively in our country , how to guard against the risks of banks to protect the healthy and stable development of the real estate industry and the overall economy and to promote a virtuous circle of the financial industry become the top task.Therefore, on the basis of learning risk prevention in tne mortgage lending from Britain, the U.S. and Hong Kong, China should combine our country’s specific situation and new problems with the banking practice, considering the shortage of risk prevention of banks and should establish the mortgage system and carry out corresponding measures and bank measures to improve risk prevention of China’s commercial banks in the real estate mortgage.