我国商业银行个人住房贷款的风险及防范外文文献及翻译.doc

我国商业银行个人住房贷款的风险及防范外文文献及翻译 Mortgage LoanA mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan However the word mortgage alone in everyday usage is most often used to mean mortgage loanThe word mortgage is a Law French term meaning "death contract" meaning that the pledge ends dies when either the obligation is fulfilled or the property is taken through foreclosure1A home buyer or builder can obtain financing a loan either to purchase or secure against the property from a financial institution such as a bank either directly or indirectly through intermediaries Features of mortgage loans such as the size of the loan maturity of the loan interest rate method of paying off the loan and other characteristics can vary considerablyIn many jurisdictions though not all Bali Indonesia being one exception2 it is normal for home purchases to be funded by a mortgage loan Few individuals have enough savings or liquid funds to enable them to purchase property outright In countries where the demand for home ownership is highest strong domestic markets have developedMortgage loan basicsBasic concepts and legal regulationAccording to Anglo-American property law a mortgage occurs when an owner usually of a fee simple interest in realty pledges his or her interest right to the property as security or collateral for a loan Therefore a mortgage is an encumbrance limitation on the right to the property just as an easement would be but because most mortgages occur as a condition for new loan money the word mortgage has become the generic term for a loan secured by such real property As with other types of loans mortgages have an interest rate and are scheduled to amortize over a set period of time typically 30 years All types of real property can be and usually are secured with a mortgage and bear an interest rate that is supposed to reflect the lenders riskMortgage lending is the primary mechanism used in many countries to finance private ownership of residential and commercial property Although the terminology and precise forms will differ from country to country the basic components tend to be similarProperty the physical residence being financed The exact form of ownership will vary from country to country and may restrict the types of lending that are possibleMortgage the security interest of the lender in the property which may entail restrictions on the use or disposal of the property Restrictions may include requirements to purchase home insurance and mortgage insurance or pay off outstanding debt before selling the propertyBorrower the person borrowing who either has or is creating an ownership interest in the propertyLender any lender but usually a bank or other financial institution Lenders may also be investors who own an interest in the mortgage through a mortgage-backed security In such a situation the initial lender is known as the mortgage originator which then packages and sells the loan to investors The payments from the borrower are thereafter collected by a loan servicer3Principal the original size of the loan which may or may not include certain other costs as any principal is repaid the principal will go down in sizeInterest a financial charge for use of the lenders moneyForeclosure or repossession the possibility that the lender has to foreclose repossess or seize the property under certain circumstances is essential to a mortgage loan without this aspect the loan is arguably no different from any other type of loanMany other specific characteristics are common to many markets but the above are the essential features Governments usually regulate many aspects of mortgage lending either directly through legal requirements for example or indirectly through regulation of the participants or the financial markets such as the banking industry and often through state intervention direct lending by the government by state-owned banks or sponsorship of various entities Other aspects that define a specific mortgage market may be regional historical or driven by specific characteristics of the legal or financial systemMortgage loans are generally structured as long-term loans the periodic payments for which are similar to an annuity and calculated according to the time value of money formulae The most basic arrangement would require a fixed monthly payment over a period of ten to thirty years depending on local conditions Over this period the principal component of the loan the original loan would be slowly paid down through amortization In practice many variants are possible and common worldwide and within each countryLenders provide funds against property to earn interest income and generally borrow these funds themselves for example by taking deposits or issuing bonds The price at which the lenders borrow money therefore affects the cost of borrowing Lenders may also in many countries sell the mortgage loan to other parties who are interested in receiving the stream of cash payments from the borrower often in the form of a security by means of a securitization Mortgage lending will also take into account the perceived riskiness of the mortgage loan that is the likelihood that the funds will be repaid usually considered a function of the creditworthiness of the borrower that if they are not repaid the lender will be able to foreclose and recoup some or all of its original capital and the financial interest rate risk and time delays that may be involved in certain circumstancesMortgage loan typesThere are many types of mortgages used worldwide but several factors broadly define the characteristics of the mortgage All of these may be subject to local regulation and legal requirementsInterest interest may be fixed for the life of the loan or variable and change at certain pre-defined periods the interest rate can also of course be higher or lowerTerm mortgage loans generally have a imum term that is the number of years after which an amortizing loan will be repaid Some mortgage loans may have no amortization or require full repayment of any remaining balance at a certain date or even negative amortizationPayment amount and frequency the amount paid per period and the frequency of payments in some cases the amount paid per period may change or the borrower may have the option to increase or decrease the amount paidPrepayment some types of mortgages may limit or restrict prepayment of all or a portion of the loan or require payment of a penalty to the lender for prepaymentThe two basic types of amortized loans are the fixed rate mortgage FRM and adjustable-rate mortgage ARM also known as a floating rate or variable rate mortgage In many countries such as the United States floating rate mortgages are the norm and will simply be referred to as mortgages Combinations of fixed and floating rate are also common whereby a mortgage loan will have a fixed rate for some period and vary after the end of that periodIn a fixed rate mortgage the interest rate and hence periodic payment remains fixed for the life or term of the loan Therefore the payment is fixed although ancillary costs such as property taxes and insurance can and do change For a fixed rate mortgage payments for principal and interest should not change over the life of the loanIn an adjustable rate mortgage the interest rate is generally fixed for a period of time after which it will periodically for example annually or monthly adjust up or down to some market index Adjustable rates transfer part of the interest rate risk from the lender to the borrower and thus are widely used where fixed rate funding is difficult to obtain or prohibitively expensive Since the risk is transferred to the borrower the initial interest rate may be from 05 to 2 lower than the average 30-year fixed rate the size of the price differential will be related to debt market conditions including the yield curveThe charge to the borrower depends upon the credit risk in addition to the interest rate risk The mortgage origination and underwriting process involves checking credit scores debt-to-income downpayments and assets Jumbo mortgages and subprime lending are not supported by government guarantees and face higher interest rates Other innovations described below can affect the rates as wellLoan to value and downpaymentsUpon making a mortgage loan for the purchase of a property lenders usually require that the borrower make a downpayment that is contribute a portion of the cost of the property This downpayment may be expressed as a portion of the value of the property see below for a definition of this term The loan to value ratio or LTV is the size of the loan against the value of the property Therefore a mortgage loan in which the purchaser has made a downpayment of 20 has a loan to value ratio of 80 For loans made against properties that the borrower already owns the loan to value ratio will be imputed against the estimated value of the propertyThe loan to value ratio is considered an important indicator of the riskiness of a mortgage loan the higher the LTV the higher the risk that the value of the property in case of foreclosure will be insufficient to cover the remaining principal of the loanValue appraised estimated and actualSince the value of the property is an important factor in understanding the risk of the loan determining the value is a key factor in mortgage lending The value may be determined in various ways but the most common areActual or transaction value this is usually taken to be the purchase price of the property If the property is not being purchased at the time of borrowing this information may not be availableAppraised or surveyed value in most jurisdictions some form of appraisal of the value by a licensed professional is common There is often a requirement for the lender to obtain an official appraisalEstimated value lenders or other parties may use their own internal estimates particularly in jurisdictions where no official appraisal procedure exists but also in some other circumstancesPayment and debt ratiosIn most countries a number of more or less standard measures of creditworthiness may be used Common measures include payment to income mortgage payments as a percentage of gross or net income debt to income all debt payments including mortgage payments as a percentage of income and various net worth measures In many countries credit scores are used in lieu of or to supplement these measures There will also be requirements for documentation of the creditworthiness such as income tax returns pay stubs etc the specifics will vary from location to locationSome lenders may also require a potential borrower have one or more months of "reserve assets" available In other words the borrower may be required to show the availability of enough assets to pay for the housing costs including mortgage taxes etc for a period of time in the event of the job loss or other loss of incomeMany countries have lower requirements for certain borrowers or "no-doc" "low-doc" lending standards that may be acceptable in certain circumstancesStandard or conforming mortgagesMany countries have a notion of standard or conforming mortgages that define a perceived acceptable level of risk which may be formal or informal and may be reinforced by laws government intervention or market practice For example a standard mortgage may be considered to be one with no more than 70-80 LTV and no more than one-third of gross income going to mortgage debtA standard or conforming mortgage is a key concept as it often defines whether or not the mortgage can be easily sold or securitized or if non-standard may affect the price at which it may be sold In the United States a conforming mortgage is one which meets the established rules and procedures of the two major government-sponsored entities in the housing finance market including some legal requirements In contrast lenders who decide to make nonconforming loans are exercising a higher risk tolerance and do so knowing that they face more challenge in reselling the loan Many countries have similar concepts or agencies that define what are "standard" mortgages Regulated lenders such as banks may be subject to limits or higher risk weightings for non-standard mortgages For example banks and mortgage brokerages in Canada face restrictions on lending more than 80 of the property value beyond this level mortgage insurance is generally required4Foreign currency mortgageIn some countries with currencies that tend to depreciate foreign currency mortgages are common enabling lenders to lend in a stable foreign currency whilst the borrower takes on the currency risk that the currency will depreciate and they will therefore need to convert higher amounts of the domestic currency to repay the loanRepaying the mortgageIn addition to the two standard means of setting the cost of a mortgage loan fixed at a set interest rate for the term or variable relative to market interest rates there are variations in how that cost is paid and how the loan itself is repaid Repayment depends on locality tax laws and prevailing culture There are also various mortgage repayment structures to suit different types of borrowerCapital and interestThe most common way to repay a secured mortgage loan is to make regular payments of the capital also called the principal and interest over a set term This is commonly referred to as self amortization in the US and as a repayment mortgage in the UK A mortgage is a form of annuity from the perspective of the lender and the calculation of the periodic payments is based on the time value of money formulas Certain details may be specific to different locations interest may be calculated on the basis of a 360-day year for example interest may be compounded daily yearly or semi-annually prepayment penalties may apply and other factors There may be legal restrictions on certain matters and consumer protection laws may specify or prohibit certain practicesDepending on the size of the loan and the prevailing practice in the country the term may be short 10 years or long 50 years plus In the UK and US 25 to 30 years is the usual imum term although shorter periods such as 15-year mortgage loans are common Mortgage payments which are typically made monthly contain a capital repayment of the principal and an interest element The amount of capital included in each payment varies throughout the term of the mortgage In the early years the repayments are largely interest and a small part capital Towards the end of the mortgage the payments are mostly capital and a smaller portion interest In this way t