Securitization in mortgage

While the effects of economic crisis of mortgage that has started in the second half of 2006 in USA and has spreaded to Europa by global economic fluctuation were continuining, the legal arrangement of mortgage has become a law in 06.03.2007 in Turkey.The mortgage system which has been implementing all over the world for years is a system that aimed to purchase homes by consumers with long term and low interest rate home credits. The essence of mortgage system that finance to home credits by financial instuations is securitization.Securitization is defined as to make liquidity to unliquited financial instruments which financial instuations have and make opportunity to have cheaper funds. It is expected that, when securitization process starts, the new funds which can obtain from securitization process will be able to use to re-finance of home credits and it would cause positive effects to consumers.Securitization was arranged similarly to foreign countires regulations by Capital Markets Board?s communiques. The main purpose of legal arrangements is previously provide to invest foreign investments to the mortgage securities.In the first part of thesis, it will be dwelled upon securitization process and how securitization regulates in foreign countiries.In the second part of thesis, it will be dwelled upon securitization process and the legal basis of securitization.In the third part, it will be analysed mortgage system and mortgage backed securities.