Designing Conceptual Model for Risk Mortgage Backed Securities With Structures Equation Model

In countries with developed financial systems and institutions, almost all real estate trades are financed through mortgage securities. In such a process, buyer pays a small part of the cost and finance remnant through a mortgage debt. On the other hand, most of finance experts say that the main cause in International Financial Crisis was the lack of a precise cognition of black boxes in these securities. Since Securities and Exchanges Organization set an agenda to publish mortgage securities, identification and modeling of risks in these securities, as well as a worldwide comparative study in countries which has published mortgage securities earlier to explore deficiencies, may guide policy makers to decrease deficiencies, in addition to make mortgage securities a beneficial instrument in hands of people and capital market.In this study, we used structured equations method. After a literature review in mortgage securities, we employed structured equations algorithm as follows: first, we completed the conceptual model of risks related to mortgage securities through expert's opinion; and then, we used questionnaire to obtain effect of every risk on the total risk of mortgage securities.