Study of Residential Mortgage Default

With the deepening of the reform of the housing system and the growth of the demand for housing, since 1998, our personal mortgage business in the country the rapid development of the 1998-2004 average annual growth rate of 84%, significantly more than the same period in financial institutions RMB The growth rate of the loans. As of the end of the first quarter of 2005, our personal housing mortgage loan balance has reached 1.67437 trillion yuan, one of the main lending business of commercial banks. Personal housing mortgage loans not only to meet the needs of the people the real estate consumer, but also for all commercial banks to adjust the credit structure, increase in operating profit, and reduce the overall risk to provide effective way, but with the increasing proportion of commercial bank loan balance coupled it with the borrower's income and the real estate market prices high correlation is also growing threat of the risk of the bank overall operating. Therefore, how to effectively solve the individual housing mortgage banks face risks, especially credit risk, establish effective risk prevention mechanisms and risk transfer mechanisms, it is particularly important for the banks. Along the risk analysis, risk measurement and risk control ideas based on the point of view of the management of the commercial banks, drawing on the basis of the research results at home and abroad, and international management experience, the application of a combination of qualitative and quantitative method of personal housing mortgage loans Credit risk analysis: on the basis of the development process of a review of personal housing mortgage loans, pointed out that commercial banks to carry out the various risks faced by such loans, and analyzes credit risk, and credit risk characteristics put forward our personal housing mortgage loans; combined with China's national conditions, a detailed analysis of the credit risk from four angles of borrower characteristics, loan characteristics, the development of the real estate market, as well as developers risk; draw quantitative research at home and abroad for credit risk analysis Merton model in personal use and the problems in the housing mortgage loans, and to study how to quantify the results of the use of the bank's risk management. On the basis of the above findings, this paper presents the perfect personal credit evaluation system, improved loan risk classification approach, able-bodied individual housing mortgage insurance mechanism and carry out individual housing mortgage securitization.