Research On The Risk Of Mortgage Backed Securitization In China

The residential mortgages assets securitization has a great effect on the supply of liquid mortgage loans,providing liquidity to the market and enriching the products of financial markets.In 2007,the subprime crisis broke out.Scholars around the world focus on the risk management of securitised products,particularly the early solvency and default risk management of the underlying asset pools.It is a wake-up call for China's burgeoning mortgage securitisation business.MBS in developed countries,based on the mature urbanization,mature real estate market,perfecting the land supply,construction,trade mode,improve the residential condition.The gap with the developed countries of urbanization at the present stage in China is still significant,the real estate market is not stable,residential conditions is uneven,limited land supply,residents asset-liability ratio is far lower than the developed countries.Investment in residential construction has overheated,housing prices in some cities have risen too fast,and relevant laws and regulations have not been improved.Therefore,the risk of MBS in China is different from that of developed countries,and the risk factors are different.Through theoretical analysis,qualitative research and quantitative research,this paper explores the factors that influence the risk of MBS in China.It was found that the average price of residential real estate investment,M2 increment,and sale of commercial housing had a significant impact on the early payment and the risk of default.benefit from the increasing residential construction investment,prepayment risk and default risk no explosion,If the M2 growth rate is too fast,it can easily lead to the risk of early payment and default.Rising house prices,in the short term,will lead to an increase in the risk of early solvency and default.The excessive growth of housing prices will reduce the share of normal repayment,and more and more borrowers will choose the non-normal repayment mode.Therefore,the risk of controlling the mortgage loan should be focused on controlling the scale of investment,controlling the rapid growth of the money supply,suppressing the housing price,preventing excessive growth,and preventing the sharp decline.Meanwhile,we will cooperate with various comprehensive risk prevention and control measures to guarantee the smooth and healthy development of China's MBS.