On Legislation Of Securitization Of Housing Mortgage Loans In China

Mortgage-backed securities is one of the most sophisticated asset securitization manifestations, and has a broad development in Western countries and Asia, and our mortgage securitization, still in the experimental stage of exploration. Based on our mortgage debt huge market potential, how to promote mortgage-backed securities from the perspective of healthy and orderly development of the legislation has important theoretical and practical significance.In this paper, the body of five parts:The first part of the concept, features, and running processes on mortgage securitization defined. The agency issued mortgage securitization of mortgage loans and other commercial banks that they will enjoy the same kind of lack of liquidity, or with the nature of future expected earnings in order to protect the mortgage debt to a certain standard form and a pool of assets sold to a special purpose vehicle, SPV will issue mortgage-backed securities and implement a process of financing; it has outstanding contractual legal relationship complicated chain and strong risk characteristics; involving mortgage securitization the formation of the asset pool, the establishment of a special purpose vehicle, the underlying assets and the credit rating of credit enhancement, such as the issuance and sale of securities, sale and management of the basic processes and services.The second part of the legislative process and the practice of exploration involving mortgage securitization. In1992China began a mortgage securitization practices and legislation to try and have made some progress, but the reality of the situation, our country’s laws and regulations of mortgage-backed securities are still many aspects of the legal issues: mortgage securitization lack of systematic adjustment specification; mortgage securitization regulatory system mixed; commercial banks as a lack of mortgage securitization transactions subject qualification; legal status and organization of special purpose is not clear; obstacles base asset transfer; accounting rules and tax lack of legal system and other supporting systems.The third part illustrates the necessity and feasibility of the conditions of our mortgage-backed securities legislation. Mortgage securitization is to a certain stage of economic development, the inevitable outcome, through its legislation, which can effectively resolve the risk of commercial banks, to help promote and improve China’s capital market more conducive to promoting the healthy development of China’s real estate industry; from the feasibility point of view, at this stage also has a successful model of foreign and domestic practices may refer to the domestic capital market has become increasingly grown gradually improve relevant laws and regulations and other prerequisites.The fourth part in the interpretation of the terms of the U.S. mortgage securitization aspects of style mode, the contents of such legislation, it can be seen, although there is no specific legislation for the U.S. mortgage securitization, but scattered in the legislation associated with its federal and various states at different times, many laws in different levels. It is peculiar to the case law of the Law Department, flexibility to adapt to changing and diverse needs of the market, thus maintaining the integrity of its assets in securities of the legal system and effective operation. Core U.S. asset securitization legislation is to protect investors, so the mortgage securitization were involved in a series of laws to protect investors around the benefits and reduce the risks to expand the investor and property rights, contracts, bankruptcy aspects, securities and trust are carried out effective legal norms.The fifth part by studying the above securitization of mortgage-related legislation, on the basis of similar legislation in the United States learn from the advanced experience and operational mechanism, the author adopted special legislation from the style model, led the Commission to establish a regulatory regime, implementation issue qualification examination system, the establishment of mortgage securities price fixing system, giving special purpose independent legal status, the establishment of several dimensions mortgage securities trading system, put forward some suggestions on China housing mortgage loan securitization legislation.