Abstract
Research background: The exponential growth of mortgage lending has taken on increasing importance in development of securitization activities market for mortgage assets throughout the world. The difficulty of comparing mortgage-backed securities of different countries explained by varying national legal features is the reason why there is no international market for such securities. Since 2014, the mortgage securities market has entered the stage of nationalization; as a result, it slowed down and lost the necessary infrastructure, including its legal components. Since securitization of mortgage loans first originated and became common in developed economies, it is of interest to compare Russian and international experience of legal regulation of each transaction stage. Purpose of the article: The purpose of this paper is to analyze legal regulation features of mortgage securitization in different countries and their impact on economic characteristics of securities in order to develop a globalization strategy for this market. Methods: The study is based on open data from Russian, European, American, England Central Banks and uses methods of structural, statistical, dynamic analyses and abstraction which made it possible to form holistic and substantiated conclusions. Findings & Value added: As a result of research activities, key features of legal regulation of mortgage securitization transaction have been identified. Based on these findings, a strategy for globalization of mortgage securities market was proposed. It contributes to international cooperation development in the field of long-term projects financing, including support measures of mortgage lenders.
Highlights
Around the world, the banking sector is traditionally strictly regulated for prudential purposes
In the course of formation and selection of the mortgage loan portfolio, the primary relationship is established between the borrower and the lender, which subsequently forms pools of mortgage loans for securitization transaction
The present paper contributes to the securitization studies, firstly, by focusing on current data as an indicator of research value; secondly, by using European securitization market sample
Summary
The banking sector is traditionally strictly regulated for prudential purposes. The system of legal regulation of securitization includes a set of rules and regulations which determine the ability and obligation to act in accordance with internal model in calculating its regulatory capital requirements. Globalization of mortgage securities market helped to enable the rapid growth of issued mortgage loans in Russia, New Zealand, European Union, the USA, Ireland, Norway, Belarus, Kazakhstan, etc. While the asset-backed securitization market is the most mature in developed countries, it still lags far behind the dynamic global growth in particular in emerging markets. We regard globalization strategy as developmental direction for mortgage-backed securities market at both stages of issuance and circulation. To this end, the authors examined international experience in regulating various stages of securitization transactions. The authors examined international experience in regulating various stages of securitization transactions. (Teplova et al, 2020)
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