Risk Control Of Individual Mortgage Loans

In recent years, new local and joint-stock commercial banks are springing up.The competition will be aggravated day by day in the banking industry. Business development index pressure of them is increasing. With the change of social consumption patterns and the rising of financing demand. Personal real estate mortgage is widely accepted as a convenient means of financing and has become a new profit growth point of commercial banks. Commercial banks have attached great importance to the business. They are scraping to the personal mortgage market from the policy and the execution efficiency. Fierce competition not only affects the market share, but also to promote the rapid expansion of cake. However, rapid development is often a huge risk. So it is necessary and practical to study the risk management of personal real estate mortgage loan.In this work, the concept, classification and development of the personal property mortgage loans are briefly introduces. The risk types 、the sources and causes of the risk of the personal property mortgage loans are analyzed. Credit risk is the main risk, so the risk assessment index and two measurement methods of personal property mortgage loan, that is personal credit score card and logistic regression model, are discussed. In this paper, a suggestion is made to measure credit risk using personal credit portfolio model which bases on the establishment of two measurement methods and empirical analysis and results comparison. The application strategy of the model is introduced in detail, and the validity of the model is tested.Finally, based on the two major risks: credit risk and operational risk, four measures are put forward to prevent and control the risk of personal real estate mortgage loan from the perspective of commercial banks, that is, Establishing an effective risk management mechanism, improving the operation process,strengthening staff construction and accelerating financial product innovation.