Peculiarities of Organization of the Foreign Mortgages and Mortgage-Backed Securities Market

G. Bazhanova, A. Shakiryanova
2014 Mediterranean Journal of Social Sciences  
The development of Russian efficient market economy requires creation and functioning of the financial market with modern stock instruments. The Mortgage-Backed Securities Market is an important segment of the financial market. Considered European and American models of the mortgage securities market organization are significantly different in: sources of mortgage loans financing; mechanisms of mortgage operations regulation; methods of mortgage institutions supervision; mortgage-backed
more » ... gage-backed securities investment environment; mortgage market infrastructure; role and functions of state at the mortgage market. The authors, basing on the analysis of foreign literature, considered models of the Mortgage-Backed Securities Market organization in developed countries, which allows them to develop and offer recommendations for improving the functioning of the Mortgage-Backed Securities Market. Models of Mortgage-Backed Securities Market Organization The analysis of the practice of mortgage securities market development reveals two basic models of market organization: American (two-tier) and European (one-tier). They were formed by the impact of factors arising from the peculiarities of legal mechanisms, specific development of credit institutions, business practice, historical and economic conditions of the country development. The comparative characteristics of these models are shown in Table 1 .
doi:10.5901/mjss.2014.v5n24p124 fatcat:rk2uamtlafgavkpk37jc45nlqq