Abstract:

Certain specialized professional institutions or securities companies are vital to the operation of mortgage backed securitization (MBS). The Shanghai Mortgage Backed Securities Company (SMBSC) - a separate or independent mortgage backed securities company, should be established in Shanghai. The SMBSC is involved in determining banks to transfer the mortgage, setting the mortgage purchase standards, and optimizing the purchase procedure. Regarding the designing of the mortgage backed securities, it is inappropriate to develop too many products at present in Shanghai, and various factors need taking into account with respect to technicalities such as the interest rate and term structure.

Key words: mortgage, securitization, Shanghai Mortgage Backed Securities Company, mortgage backed securities