Mortgage-backed securities(MBS)

originated in the U.S.and introduced into China in 2005

is a vehicle for real estate finance.This paper describes their history

mechanism

development

theory and experiences in the USA and other countries.In China

the real estate finance is partitioned into four stages: first

non-finance stage(1949-1977);second

sprouting stage(1978-1997);third

inceptive stage(1998-2004) and the fourth

developing stage(2005-)

and it is distinguished from the finance of Real Estate Development firm.The differences between them are in following aspects: object

objective

mode and risk.This paper analyzes the institutional defects in view of the policy environment

the primary market of MBS

the secondary market of MBS

and offers countermeasures: first

setting up National Housing Mortgage Management Institution

second

enlarging the service scope of housing mortgage-backed loan

third

differential loaning

fourth

regularly issuing the pricing of housing construction;fifth

normalizing the institutional investors.