The Countermeasures of my country’s Housing Mortgage Loan Securitization
(1) Select a suitable commercial bank as the sponsor
In the United States, there are four types of financial institutions in the primary residential mortgage market, namely savings and loan associations, commercial banks, mutual savings banks, and life insurance companies. In China, there is only a primary market system for housing mortgage loans issued by commercial banks. Therefore, in theory, any commercial bank can be the initiator of mortgage loan securitization. However, due to differences in historical background, loan structure, and economic development in the regions where the banks are located, there are also significant differences in the scale of residential mortgage loans among commercial banks. Therefore Judging from the proportion of housing mortgage loans in the total loans of provincial and municipal branches, some banks have exceeded 20%, while others have less than 5%. , according to the principle of scale benefit, our country should choose the commercial bank whose housing mortgage loan has reached a certain scale as the sponsor. China Construction Bank is the earliest state-owned commercial bank in China to offer personal housing loan business. By the end of 2000, the bank had issued a total of 182.3 billion yuan of commercial personal housing loans, with a loan balance of 136.8 billion yuan, accounting for nearly 10% of the bank’s various loans and a 42% market share in the industry. . Therefore, China Construction Bank should be the bank of choice for the originator of my country’s residential mortgage loan securitization. At the same time, provincial and municipal branches with a relatively large scale of housing mortgage loans, relatively perfect risk control mechanisms, and relatively standardized mortgage loan operations should be selected for pilot projects.
(2) Improve the primary market of housing mortgage loans
The implementation of housing mortgage loan securitization must establish the secondary market of housing mortgage loans, and the establishment of the secondary market of housing mortgage loans should be based on the perfect primary market of housing mortgage loans. The improvement of the primary market of residential mortgage loans Loan securitization in my country includes the following two aspects: 1. With the deepening of my country’s housing system reform and the formation of housing residents’ consumption hotspots, commercial banks should greatly increase their capital investment in housing mortgage loans to meet the objective needs of housing mortgage loan securitization on assets bases.
2. Establish and improve the risk prevention mechanism for housing mortgage loans. Housing mortgage loans have a long term and are greatly affected by various uncontrollable factors during the loan duration. There are many real and potential risks (such as default risk, interest rate risk, prepayment risk), and the objective existence of various loan risks will directly Or indirectly affect the stability of the expected cash income flow of residential mortgage loans. The stable expected cash flow is the primary condition for securitized mortgage loans, the basis for the issuance of mortgage loan securities, and the source of funds for the repayment of mortgage loan securities. Due to the low proportion of existing residential mortgage loans in total bank loans, various risks have not been fully exposed. However, with the rapid development of residential mortgage loans, the proportion of residential mortgage loans in total bank loans has increased. The problem will become more and more prominent, which will constitute a major obstacle for the bank to further develop the residential mortgage loan business. Therefore, to implement the securitization of housing mortgage loans, it is necessary to strengthen the prevention and resolution of mortgage loan risks while gradually expanding the scale of housing mortgage loans, to ensure the normal operation and healthy development of mortgage loans securitization.
(3) Formation of a special housing mortgage securities company, an SPV
As an ad hoc trading institution, SPV is the most critical participant in the securitization of residential mortgage loans and has a decisive impact on the operation efficiency and future development of mortgage loan securitization. According to the nature and function of SPV, proceeding from my country’s national conditions, the government should fund the establishment of a semi-official SPW housing securities company. This is because mortgage: 1. Funded by the government, it can not only fully reflect the government’s guidance and support for mortgage housing finance, strengthen the government’s leading role in the securitization of housing mortgage loans, but also endow SPV with higher credit, so that the housing mortgage loan securities issued by SPV can be improved. More easily accepted by investors;
2. Commercial banks set up SPVs. Due to the close “mother-child relationship”, related transactions between commercial banks and SPVs are likely to occur, and there may be real sales of residential mortgage loans, bankruptcy isolation of SPVs, and issuance of residential mortgage loan securities. have a huge negative impact. The government-funded establishment can effectively solve the problem of related transactions in the securitization of housing mortgage loans, and ensure the normal operation of the securitization of housing mortgage loans from the system; 3. At present, the risk prevention mechanism of my country’s commercial banks is not perfect, the financial market is not yet mature, and there is a lack of operational experience in the securitization of credit assets, so the SPV in the initial stage will face greater operational risks. With the government as the background, SPV can better deal with the possible repayment crisis in terms of funds, to ensure the sustainable and stable development of mortgage securitization.
(4) Introducing different types of residential mortgage loan securities in stages
Issuing mortgage-backed securities is a new thing in our country, the issuer should gradually accumulate experience, and the investor also has a process of understanding and accepting it. Therefore, in the issuance of mortgage-backed securities in my country, different types of securities should be launched at different stages of development. In the initial stage of residential mortgage loan securitization, resale mortgage loan securities can be considered as the first choice. Resale mortgage securities are not only technically simple and highly operable but also have high security, liquidity, and profitability due to the guarantee provided by government agencies. Therefore, the issuance of resale mortgage securities by the government in the pilot stage of mortgage securitization in my country can not only attract more investors to subscribe, but also promote the development of the secondary market of residential mortgage loans and the prevention of risks of financial institutions, and can also provide a basis for future issuance of other mortgage securities. Create conditions and lay a solid foundation for the varieties of residential mortgage loan securities with more complex technology. As a new investment vehicle, the issuance of resale mortgage securities requires the following countermeasures:
1. It should take the form of low denomination and high income;
2. Different securities should be designed according to the different term structure and income structures of housing mortgage loan portfolios to meet the needs of different investors;
3. The interest rate of securities should be floated to prevent the risks caused by changes in market interest rates; Underwriting intermediaries with large scale, strong financial strength, good operating performance, and high social reputation should be selected to ensure the successful issuance of securities.
Under the conditions that the residential mortgage loan securitization technology is improving day by day, the financial market is further regulated, and investors are gradually maturing, it is possible to issue secured mortgage loan securities ordered mortgage loan securities with complex technical operations based on resale mortgage loan securities.
(5) Create a good external environment
The implementation of housing mortgage loan securitization must not only have certain internal conditions but also need to create a good external environment to ensure the effective implementation of housing mortgage loan securitization. 1. Establish a government mortgage loan guarantee agency to provide guarantees for residential mortgage loan loans in the primary mortgage market, act as a guarantor and insurer for unconditional loan repayments, and strengthen the mortgage loan portfolio in the secondary mortgage market to enhance residential mortgages The credit rating of the loan securities; 2. While strengthening financial market supervision, vigorously cultivate institutional investors of mortgage-backed securities, making them the “main force” and “stabilizer” of the mortgage-backed securities market; 3. 3. Gradually improve the intermediary service system, strictly regulate the behavior of intermediary service agencies, and provide guarantee for the Issuance and circulation of mortgage-backed securities; Strengthen the construction of laws and regulations on the securitization of residential mortgage loans, and form a legal and regulatory system involving the residential industry, banking industry, securities insurance, and other intermediary service industries
4. Provide a legal guarantee for healthy development; Implement preferential tax policies for the securitization of residential mortgage loans in the pilot stage to promote the full implementation of mortgage securitization.
