Risk Analys Is In The Process Of Mortgage Loan

In the past few years, there was a rapid growth of mortgage loan in China, it has already been one of the most important personal banking business in and a main source of profit for most China’s commercial banks. Banks always consider mortgage loans as a safer and lower risky business because the real estates secure them. However, the soaring of estate price brings the price risk of mortgage loan. Moreover, the banks are suffered by the risk of "fake mortgage", because they don’t have the ability to judge the quality of their clients, or the clients’will to buy the estate or not. Nowadays, the global financial crisis and the depression in local housing market stimulates some persons to create more "fake mortgage", which will be a huge challenge to the banks.In order to control the mortgage risk as well as to make the banking assets more secure, the banks should have to operate more carefully and try their best to eliminate the risk of "fake mortgage".The writer had been in charge of mortgage loan at China Merchants Bank for six years and now with the help of what she learned from the MBA courses and his working experience, she introduces the basic situation and major character of Chinese real estate market and mortgage loan market, analyzes the risk character of "fake mortgage" through case study and statistic study, and gives measures against "fake mortgageThe writer believes:1. The risks on mortgage loan reflects the risks on real estate market and other financial fields.2. The cause of "fake mortgage" is asymmetric information, so the banks should gather as much information about their clients as they can.3. In order to catch information and evidence more efficiently, the banks should promote the ability to analyze the risk character of "fake mortgage"4. A better program may reduce the risk.