After the issuance of mortgage securities secured by housing mortgage loans, the mortgage assets originally concentrated in banks have become mortgage bonds held by many investors in the capital market, which makes the risks of housing mortgage loans dispersed accordingly. Moreover, since mortgage-backed security is guaranteed by mortgage portfolio, the risk of personal default is dispersed, and the effective income of investment can be guaranteed.

2. Improve the liquidity of assets and solve the liquidity problem of "short-term liabilities supporting long-term assets" in bank mortgage loans.

Because the term of mortgage loan can be as long as 30 years, the recovery cycle of credit assets is very long for banks that issue mortgage loans, and the longest time for banks to absorb deposit liabilities is only 5 years (in fact, residents' deposits are mainly current or 1 year). The maturity of assets and liabilities does not match, which increases the operational risk and management difficulty of banks. Through securitization, banks can solve the liquidity constraints faced by banks by selling long-term mortgage assets or holding highly liquid mortgage securities in the capital market in time. In addition, the securitization of real estate mortgage creditor's rights breaks the geographical restrictions of mortgage funds through the secondary mortgage market, so that mortgage funds can flow nationwide, balance the unbalanced mortgage interest rate caused by uneven regional economic development, and make it average and market-oriented.

3. The positive role of mortgage securitization in stimulating the primary mortgage market.

For mortgage borrowers, mortgage securitization broadens the sources of funds for mortgage loans, enhances the liquidity of mortgage loans, disperses the risks of mortgage loans, and enables financial institutions to extend the time of mortgage loans, expand the scope of mortgage loans, and issue more housing mortgage loans, thus meeting the financing needs of market buyers. In this way, for property buyers, the willingness to buy houses will not be delayed because of the bottleneck of the shortage of borrowing funds; Real estate developers will also have more opportunities to sell their completed and about to be completed properties, thus forming a virtuous circle that will help activate the primary mortgage market, ease the imbalance between supply and demand of real estate, and effectively stimulate the growth of total social demand.

legal ground

Measures for the Administration of Pilot Projects of Credit Asset Securitization

Article 2 These Measures shall apply to structured financing activities in which banking financial institutions, as promoters, entrust credit assets to trustees, and the trustees issue beneficiary securities to investment institutions in the form of asset-backed securities, and the cash generated from the assets is used to pay the proceeds from asset-backed securities.

The trustee shall, in accordance with these Measures and the trust contract, entrust loan service institutions, fund custody institutions, securities registration custody institutions and other institutions that provide services for securitization transactions to perform corresponding duties.

The trustee is limited to the trust property and undertakes the obligation to pay the income of asset-backed securities to the investment institution.