Legal Issues of Personal Housing Re-mortgage Loan of Commercial bank

Commercial bank's personal housing re-mortgage loan business has grown dramatically in China in recent years.As a new type of financing tool,this business involves various parties which results in a variety of complicated legal issues.This paper divides the business into three types according to different subjects involved and introduces their motivations and related legal basis respectively.Furthermore,the paper gives a detailed explanation about legal issues of insurance concerning personal housing re-mortgage loan and commercial bank's legal status in those issues.Centering on the process character of this business,the author points out that due to the lack of collaterals during a period after the issue of re-mortgage loan,commercial banks have to face the potential risk,and strengthening the cooperation among commercial banks and choosing professional guarantee corporations would be effective approaches to reduce such risk.