The Research Of Personal Housing Mortgage Loan Risk In Chinese Commercial Bank

Personal housing mortgage loans are based on their loans to buy houses ascollateral,mainly refers to the individual in the purchase of the shortage of funds,loansto banks or other financial institutions to meet the needs of their buyers.The macroscopic and systemic risk is the most common risk in the personalhousing mortgage loan market and the main manifestation form is the credit risk. Theloss suffered by the bank is difficult to make up, if the value of the collateral housefrom the borrower is lower than the loan market value, namely (the LTV is big in1)the default cost of the borrower is relatively low, this way if the borrower does notrepay on time, even if the mortgaged house is disposed by the bank.The real estate prices have been in a state of vibration and the price reduction ofthe real estate will let the bank undertake the corresponding risk of loan default. Sothe bank could shorten the risk period which is lost by the defaults or the rationaldefault in the way of reducing the loan amount. When the interest rate is changing,the bank shall master the change condition quickly, according to the impact on thehousing mortgage loans by interest rate fluctuations, the bank shall find the effectivemethods as soon as possible to reduce the risks they face and alleviate the economicpressure.Housing loans for the longest reach20to30years,such a long time will enablefinancial institutions were forced to face great uncertainty.So for financial institutionsto guard against the risk is what must be done.