Single-tier model of mortgage lending operates in a number of developed Western countries such as Denmark, Germany, France. In contrast to the single-tier model of mortgage lending, the functions of the lender and the investor are performed by one entity, that is, the issuing bank, which independently issues and sells securities.
This mortgage lending scheme is also called german model... It became widespread in Europe and also began to be used in developing countries.
In Germany, the accumulation of funds for the purchase of housing and the issuance of mortgage loans is carried out by specialized credit institutions, construction and savings banks. That is, lending to individuals is carried out by attracting funds from the citizens themselves.
An individual opens a savings account at the cash desk and saves money on it up to a certain level, about 50% of the cost of housing. After that, he receives a preferential loan for the missing amount and transfers the purchased real estate to a credit institution as collateral until the loan is fully repaid. It should be noted that the borrower also receives a government subsidy of 10%.
With a single-tier model of mortgage lending, lenders, as a rule, are specially established credit organizations -.
Loans are refinanced in two ways:
- first, through the issue (MBS) based on pools of mortgages, which is carried out by banks themselves, subsequently selling MBS (in particular, mortgage bonds) on the stock market to various investors;
- secondly, through the sale of mortgages, organized or not organized in pools and put up by the bank on the primary securities market.
For the primary mortgage lending market, such transactions are transactions:
- on the issuance of loans (loans);
- mortgage of real estate;
- on levying execution on pledged property and selling it in case of improper performance or non-performance by the borrower of his obligations;
- for insurance of the pledged item.
For the secondary mortgage lending market, such transactions include the issue of equity securities secured by mortgage assets and transactions for their placement.
Mortgage papers are issued by the bank itself. The bank that issued the mortgage loan (a specialized mortgage credit organization) independently refinances mortgage loans by issuing bond-type securities - mortgage sheets.
Mortgage sheets, unlike ordinary bonds, have special security - property entered in a special register - mortgage loans.
The activities of mortgage banks are strictly controlled by the state and banking supervisory authorities.
The features of a single-level model in comparison with a two-level model are also:
- the relative cheapness of its organization and control over it;
- no need to insure credit and financial risks;
- absence of expenses for payment of agency fees to banks servicing the loan, which reduces the cost of the loan for the pledgers.
Distinctive features of the German model - based on the savings system from the American model - based on the system of the secondary market for mortgage-backed securities are shown in the table.
| Compared parameters | German model | American model |
| The cost of resources attracted by the bank | Below market | Market |
| Getting a loan | After passing the savings stage | Immediately after contacting the bank |
| Form of attracted resources | Savings (deposit) accounts | Mortgage-backed securities |
| The main form of government support | Bonus payments on deposits | State guarantees for mortgages |
| Lending volumes | Limited by savings | Limited by the borrower's solvency | Constantly | At the 1st stage in the formation of the market system |
| Lending terms | 8-10 years old | 15 to 30 years old |
| Credit amount | up to 45% of the cost of the apartment | Up to 100% of the cost of the apartment |
It should be admitted that in terms of economic progress, the classic American model looks the most effective. Thanks to the resale of issued loans and a developed market for mortgage-backed securities, nothing limits the growth of "mortgage" capital.
A mortgage is a pledge of immovable property when obtaining a loan from a credit institution, which gives the creditor (pledgee) the right to preferentially satisfy claims against the debtor (pledger) at the expense of the value of the pledged property. The pledgee, in the event that the pledgor fails to fulfill the obligation to repay the loan, acquires the right to receive compensation through the sale of the pledged real estate as a matter of priority (in comparison with other creditors).
There is a net mortgage (a loan for any purpose with real estate collateral) and a targeted mortgage (a loan for the purchase of real estate, which will be the subject of collateral).
There are various options for combinations of the object of collateral and the object of lending: a loan for the construction of housing secured by the same housing; a loan for the construction of housing secured by a land plot; a loan for the purchase of a land plot secured by housing, etc. As collateral for housing, another (spare) living area of \u200b\u200bthe borrower, or the only area where he lives, can be provided.
Distinctive features of the current stage of formation in Russia of the system of housing mortgage lending are:
The decline in housing construction as a result of the crisis;
Low quality of the loan portfolio, high percentage of defaults;
Growth in interest rates on mortgage loans;
Revision of the terms of agreements on previously issued loans.
Usually, transactions in the mortgage market are carried out in two stages. At the first stage, called the primary market, loans are granted secured by real estate. Since banks provide loans for a long term and at a relatively low interest rate, they have a decrease in the amount of available cash resources that are necessary for carrying out daily activities. The question of how to get back the money given for a long time in the shortest possible time is called the problem of refinancing the issued loans. To solve this problem, there is a secondary market for mortgage lending.
The main methods of refinancing loans are reduced either to a complete assignment of rights on a mortgage loan issued by a bank to a specialized organization, or to the issue of securities by the bank itself, which issued the loan, while leaving the requirements for this loan on its balance sheet. For example, the assignment of rights of claim under a mortgage to third parties.
Based on the method of refinancing mortgage loans, the basic models of mortgage lending were built - two-tier (classical) and one-tier, which are also named after the names of those countries where they have received the greatest development.
1. The classical (two-tier) model of the organization of the mortgage system was created and was most developed in the United States. At the initiative of the American government, special government structures were created that insured mortgage loans issued by banks. This is the so-called. an American mortgage lending scheme in which mortgage loans issued by banks are assigned to specially created mortgage agencies. They, in turn, package up individual loans, issue mortgage-backed securities against the formed packages (pools), sell them on the stock market, again buy loans from banks, etc.
2. In contrast to the classical model of mortgage lending, with a single-tier model, the bank that issued the mortgage loan independently issues bond-type securities secured, on the one hand, by the issued mortgage loans, and on the other hand, with real estate pledged by the borrowers to obtain a loan. This model is also called the German mortgage model. The one-tier system is more common in Western European countries. Unlike the American one, it was formed not thanks to a government decision, but in the process of the natural evolution of the European credit system.
In Russia, a two-tier model of mortgage lending is adopted as a basis. This is reflected in the adopted Concept for the Development of the System of Housing Mortgage Lending.
At present, there are two main models of mortgage lending in the world: the classic American model and the German one based on building savings banks. In the first case, a mortgage loan is issued against the security of an already built house, in the second - the construction savings bank system finances the construction of a house.
In the American mortgage model, the first stage, called the primary market, is the provision of loans secured by real estate. Since banks provide loans for a long term and at a relatively low interest rate, they have a decrease in the amount of available cash resources that are necessary for carrying out daily activities.
The shortest terms of repayment of money given out for a long time pose to banks the problem of refinancing issued loans. The solution to this problem in the American mortgage model is the secondary market for mortgage lending, in which refinancing of loans is reduced to a full assignment of rights on a mortgage loan issued by a bank to a specialized organization that combines monotonous mortgages in pools and issues its own securities on the security of the pools.
In the single-tier mortgage model, the main method of refinancing loans is the issuance of securities by the bank itself, which issued the loan while leaving the requirements for this loan on its balance sheet. In a one-tier model, the bank that issued the mortgage loan independently issues bond-type securities, secured, on the one hand, by the issued mortgage loans, and on the other hand, with real estate pledged by the borrowers to obtain a loan.
The single-tier mortgage model is more common in Western Europe. Unlike the American model, it was formed not due to an administrative decision of the government, but in the process of the natural evolution of the European credit system. The process of issuing mortgage bonds by banks is regulated by special laws and monitored by the banking supervisory authorities, and the activities of the banks themselves are limited to a narrow list of low-risk transactions.
Thus, the differences in the methods of refinancing mortgage loans characterize the construction of two basic models of mortgage lending: two-tier or classical and single-tier, which are also named after the names of those countries where they have received the greatest development.
In addition to these models, the system of contract building savings is used in world practice. This model and the single-tier mortgage lending model are now being combined into one model and called it the German mortgage lending model. In contrast to the one-tier model, in which banks raise funds for mortgages on the open financial market by issuing bonds, the construction savings bank system is closed, divorced from the financial market.
The principle of its functioning was borrowed by our housing savings cooperatives (ZhNK), whose activities are regulated by the Federal Law of December 30, 2004 No. 215-FZ "On housing savings cooperatives". In addition, the State Duma is considering a draft Federal Law "On Construction and Savings Banks", which was rejected because it did not suit the developers who worked on equity schemes.
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Home loan books
On sale today:- Mortgage: How to get it right? How to calculate all the risks?
Publisher: Eksmo-Press. Year: 2011. Series: Advice from experienced people.
Who benefits from a mortgage? To take or not to take out a loan? Which bank is better? Which interest rate should you choose? How to arrange and calculate all the risks? The reader will find answers to these and other important questions in the book. The procedure for obtaining a mortgage loan, the procedure for buying an apartment on credit, as well as the possibility and conditions of mortgage lending for young families are discussed in detail. The guide is relevant for everyone who wants to use a mortgage loan, ...
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Introduction
A mortgage is one of the exploits of a pledge without transferring the pledged property to the pledgee. A mortgage (from the Greek hypotheka - pledge, mortgage) is a pledge of real estate to secure the monetary claim of the creditor-pledgee to the debtor (pledgee). In Russia, the procedure for the implementation of mortgages is regulated by the Civil Code of the Russian Federation, Federal Law No. 102-F3 dated July 16, 1998 "On Mortgage (Pledge of Real Estate)" and other regulatory legal acts adopted in accordance with them. A mortgage is a pledge of land plots, enterprises, buildings, structures, apartments and other real estate.
By virtue of the pledge, the creditor under the obligation secured by the pledge has the right, in the event of the debtor's failure to fulfill this obligation, to receive satisfaction from the value of the pledged property primarily to other creditors.
Thus, the pledge is one of the ways to ensure the proper performance of obligations. Compared to other methods of securing the fulfillment of obligations: forfeit, deposit, surety, retention of the debtor's property, bank guarantee, the pledge is more attractive precisely from the point of view that it is easier to use it to enforce collection. The pledge assumes that the debtor has property that can be foreclosed, however, the property on which the mortgage is established remains with the pledger in his possession and use.
The purpose of this work is to consider what models of home lending are. And what are the stages of home lending?
1. The main models of mortgage lending
There are two models (schemes) of mortgage lending.
1. Two-tier ("American model"), based on the secondary mortgage market. The essence of the model is as follows. The bank issues a mortgage loan to the borrower in exchange for the obligation to transfer a fixed amount to the bank every month within a certain period. This obligation of the borrower is secured by the pledge of the purchased property. The bank sells the loan to one of the mortgage lending agencies, while transferring the collateral obligations. The agencies immediately reimburse the bank for the funds paid to the borrower and in return ask to transfer the monthly payments received from him minus the bank's profit (margin) to the agency. The amount of monthly payments, i.e. the rate at which the agency undertakes to buy mortgage loans is set by the agency based on the requirements imposed by investors on the profitability of financial instruments. Mortgage agencies, having bought a certain amount of mortgage loans from commercial banks, collect them into pools and create on the basis of each new security, the source of payments for which are payments from borrowers. These payments are not guaranteed by the mortgage of real estate, but by the agency as a legal entity. Agencies sell mortgage-backed securities on the stock market and then also act as intermediaries, transferring payments to the agency from the bank to the investor who bought the security, minus their margin.
In the US, rates on mortgage-backed securities are only slightly higher than rates on government securities, which is explained by the confidence of investors that in the event of a massive default of borrowers, the government will provide the necessary financial assistance to mortgage agencies to pay off their obligations. State support gives the opportunity to view the securities of mortgage agencies as almost risk-free and allows the most conservative investors, such as pension funds, to invest in them, and, therefore, provides a flow into mortgage loans with the cheapest resources on the market.
2. One-level ("German model"). This is an autonomous balanced mortgage model based on the savings and loan principle of functioning like the German "private construction savings banks" - Bausparkasse, French Livret Epargne Logement, American Savings & Loans. Here the depositor gets the opportunity to accumulate the necessary contribution for the purchase of an apartment (for example, in the amount of 50% of its value) for a long period, and then receive a mortgage loan for the purchase (construction) of a pre-selected apartment. The construction savings bank, being a closed financial structure, begins its activities with the formation of the authorized capital and has its own source of funds (including the housing fund) for issuing loans on its basis. All cash funds (own and borrowed) are used only for conducting statutory activities, i.e. go to finance the construction of housing and the issuance of mortgage loans for the purchase of newly built apartments.
2. The main stages of housing mortgage lending
Registration, conclusion and servicing of a credit transaction is a long process that requires careful consideration of the decisions made. To shorten the procedure for obtaining a loan and the lender to receive comprehensive information about the client, credit institutions have developed standard forms of documents. For example, for home lending, this is an application for a loan, certificates of deposits and job availability, a calculation of the cost of obtaining a loan and a credit certificate. For profitable real estate, the list of information should be much wider. The main focus here is on the quality of real estate management, assessing the property's ability to generate income needed to repay the loan. For this, in particular, the amount of operating expenses is analyzed, their distribution between the borrower and the tenant, the reputation and business of the tenants, the professionalism of the property manager are studied, the impact of tax and other consequences of debt financing on the investment project is determined.
There are the following stages of mortgage lending:
1) preliminary (clarification to the client of the basic terms of lending, transfer of a list of documents for obtaining a loan);
2) collection and verification of information about the client and the pledge;
3) assessment of the likelihood of loan repayment;
4) making a decision on a loan (amount, term, interest rate, repayment procedure);
5) conclusion of a credit transaction;
6) servicing a credit transaction;
7) closing a credit transaction.
First step
At the stage of preliminary qualification of clients, an interview is conducted with a potential borrower, during which the following tasks are solved.
1. The circle of clients is determined who, from the point of view of the bank, can be qualified as potential borrowers, whose income allows them to qualify for a home mortgage loan and who intend to purchase a home.
2. Clients receive the necessary information regarding the procedure and conditions for the provision of housing mortgage loans by the bank to the population, including:
l the bank's requirements for the borrower's solvency and creditworthiness, for loan security, for the subject of pledge, for the assessment of collateral, for insurance;
l list of documents;
l the procedure for concluding a loan agreement and an agreement for the sale and purchase and mortgage of an apartment, including the procedure for performing all actions related to the mandatory state registration of real estate pledge transactions, the need for notarization of certain documents; the procedure and terms for granting and repaying a loan, the rights and obligations of the creditor bank and the borrowing client, etc.
3. A preliminary calculation of the maximum allowable loan amount, monthly payments of the client towards repayment of the loan and interest on it, the approximate amount of own funds that the borrower should have.
Prequalification does not require credit approval.
Second phase
A client who has passed the prequalification procedure receives a list of documents that he must submit to the bank to confirm the information necessary to make a decision on the possibility of issuing a loan to him on terms acceptable to the bank. To confirm the information received from the client, the bank sends:
· Request at the place of work of the borrower to confirm information about his income at the place of work;
· Request to other credit institutions indicated by the borrower to confirm information on deposits and on the fulfillment of obligations on received (repaid and current) loans.
Stage three
The main stage is considered to be the stage of assessing the likelihood of loan repayment by a potential borrower (borrower's underwriting). At this stage, an analysis of the collected and documented information is carried out, which includes:
· Assessment of the solvency of a potential borrower (his willingness to fulfill the assumed financial obligations based on the analysis of his credit history);
· Assessment of the sufficiency of own funds (and the source of formation), which the potential borrower has to pay the down payment for the purchase of housing and pay all other necessary expenses.
The selection criteria for borrowers in different banks may differ, but, as a rule, when providing a mortgage loan for the purchase of a home, the lender pays attention to the following main points.
1. The level of solvency of a potential borrower
For this purpose, the following qualification ratios are calculated.
a) the ratio of the monthly (annuity) payment of the borrower for a housing mortgage loan to the total income cannot exceed 40%:
P \u003d Monthly payment to pay off the principal and interest on the mortgage loan (annuity payment) of the borrower, $
D \u003d sum of monthly total income (net income), $
Basically, the value of this coefficient should not exceed 30-40%. In some banks, the limit value of the K / Z ratio The mortgage debt ratio will be discussed in more detail below. and the borrower's income in the following amounts:
l if the K / Z ratio is less than or equal to 50% (0.5), the P / D ratio is 50% (0.5);
l if the value of the coefficient K / Z is more than 50% (0.5), the following table is applied (Table 1):
Table 1. Limit value of the P / D ratio depending on the K / Z ratio
|
The borrower's monthly income specified in the subsistence minimum (LW) LW is the cost of living per capita in St. Petersburg, established by the order of the Government of St. Petersburg (Committee on Labor and Social Protection of the Population). per family member |
P / D ratio value |
|
|
5.0 and more |
b) The ratio of the borrower's monthly long-term liabilities (net of insurance, tax and other payments on the acquired property) to the total income cannot exceed 60%:
Coefficient O1 / D =. (2)
О1 \u003d The amount of mandatory monthly payments, in which monthly housing costs are included only in the annuity part of the loan payment, $
D\u003d sum of monthly total income (net income), $
For a more accurate analysis of the borrower's solvency, reference coefficients can be additionally calculated:
R / D ratio \u003d (3)
F \u003d monthly expenses of the borrower for the purchased property (including payments for insurance, property taxes, etc.), $
D \u003dthe amount of monthly total income (net income), $
O2 / D coefficient \u003d (4)
О2 \u003d The total amount of obligatory monthly payments of the borrower, $
D\u003d Sum of monthly total income (net income), $
The list of income and expenses taken into account when calculating the borrower's solvency is presented in table. 2
When calculating the solvency of the borrower, only part of the income from the rent is taken into account, as can be seen from table. 3.
In addition, if the net rental (hiring) income is more than 50% of the borrower's net gross income and in the amount exceeds $ 500 per month, then the following formalities must be observed to include it in the borrower's gross income:
1) the level of income received from the rental of housing for rent of a real estate object must be independently assessed by a licensed appraiser, and if the appraisal by a licensed appraiser, and in the event that the estimated value of rental income turns out to be less than documented, for all subsequent calculations, the underwriter should be guided by the estimated value.
2) the borrower must insure:
l from the risk of damage to the property being leased for an amount not lower than the loan amount increased by 10%;
l their civil responsibility as the owner of the rented real estate.
3) provide a certificate from the Unified State Register of Rights on the absence of encumbrances on the leased property.
table 2
Income and expenses taken into account when calculating the borrower's solvency Annual payments are divided by 12 and are recorded as monthly. May be accumulated in a deposit account.
|
Indicator name |
What includes |
||
|
Home mortgage monthly payment |
Payment for repayment of principal and interest |
||
|
Total Monthly Home Mortgage Payment |
payment of tax on the acquired property; monthly payment for life and disability insurance of the borrower; monthly payment for insurance of pledged real estate; monthly payment for insurance of loss of ownership of the owner of the apartment; payment for maintenance services (regular mandatory payments related to the operation of the dwelling (payment, gas, repairs, cleaning, etc.); other expenses for the purchased housing, if they are of a regular nature |
||
|
Payments on existing loans; obligatory payments; paid alimony; monthly existing expenses of the borrower related to the housing owned by the borrower (property taxes, real estate insurance, maintenance fees, other possible regular fees and payments related to the operation of the home); monthly (or recalculated per month) expenses for the payment of income taxes, as well as tax and insurance payments related to the presence of other movable and immovable property; rental of property; regular payments related to maintaining the life of the borrower and his family (food, education, medical care); expenses related to recreation, entertainment, expensive hobbies; other fixed and obligatory expenses the borrower carried out monthly or at other intervals throughout the year |
|||
|
Borrower's total income |
Salary at the main place of work, including the average annual income for overtime work and bonuses; income from part-time work and not at the main place of work; income in the form of dividends on bonds, shares, from participation in other (not joint-stock) business companies; income in the form of interest on deposits and in the form of permanent stable insurance payments; pension payments and scholarships; alimony and child support; government subsidies; net rental income |
Table 3.
2. The level of creditworthiness of a potential borrower
Based on the study of the borrower's credit history, it is determined how responsible the bank's client is in fulfilling the obligations assumed, and also the amount of the outstanding balance of the debt at the moment, the term and amount of monthly payments for its repayment are established.
3. Adequacy of own funds available to the potential borrower to pay the down payment for the purchase of housing.
The bank determines the basic requirements for the financial capabilities of the borrower. The amount of the down payment when buying a home, as a rule, should be at least 30% of the home price. In addition, the borrower must have sufficient own funds to cover the costs of the loan transaction and home purchase, which include:
l commissions to the real estate company (if necessary);
l fee for assessing the value of the collateral (apartment);
l fee for the provision of the necessary certificates for the acquired real estate (including the absence of collateral) (KMZH) (Bureau of Technical Inventory, Moscow City Committee for State Registration of Rights to Real Estate and Transactions with It, Moscow Regional Registration Chamber);
l fee for notarization of the mortgage agreement (if the bank requires);
l fee for state registration of an apartment mortgage agreement;
Insurance fees;
Bank fee for applying for a loan;
Loan account opening fee;
Payment for issuing a loan in cash;
Other expenses.
The bank also evaluates the sources of funds. Acceptable sources are:
Borrower savings;
The borrower's own funds received by him from the sale of his property. The sale must be made prior to obtaining the loan;
Gifts from family members with written confirmation that payment will not be required for them;
Gifts and grants from non-profit organizations with written confirmation that no payment will be required for them;
Gifts or grants from an employer made as part of an employee assistance program that should not be refunded or should be refunded after the first mortgage is fulfilled.
4. Level of loan security
Before deciding on the possibility of granting a loan for the purchase of a particular apartment, the bank must make sure that the residential premises purchased using the loan meets the requirements for securing a loan.
The maximum loan amount that can be issued to the borrower based on the value of the collateral provided is determined by the K3 coefficient (the ratio between the loan amount and the value of the collateral).
Coefficient K3 \u003d (5)
This ratio, as a rule, is 70-80% of the appraised value or the selling price of the acquired property, whichever is less. But it can go up to 95%.
In addition to the value of real estate, the bank checks:
Table 4. Main compensating factors and risk factors influencing the decision to grant a loan
|
Compensating factors |
Risk factors |
|
|
Large down payment Proven ability to devote a significant portion of income to housing costs Prospects and stability of the position held, field of activity, business Borrower's age, profession, educational level and qualifications, the prospect of an increase in salary and promotion Large assets of the borrower (property, securities, etc.) Proven ability to accumulate funds No debt on previously taken loans |
Lack of stability in employment (frequent job changes without increasing income) The ratio of the amount of liabilities in the borrower's income exceeds the criteria established by the bank Unfavorable credit history of the borrower Risks associated with the characteristics of the pledged property and the ratio of its appraised value and the loan amount The specifics of the borrower's professional risk Disability risk Borrower age |
Only when all the conditions are met, a decision can be made to grant a mortgage loan.
When deciding on the provision of a mortgage loan, the so-called compensating factors and risk factors are taken into account, the main of which are presented in Table 5.5. Compensating factors are generally subjective and therefore not accurately quantified. The challenge for the bank is to determine whether the compensating factor or combination of compensating factors is significant enough to compensate for certain aspects of the mortgage application.
The underwriting expert should document his recommendations to the credit committee for approving or refusing a home mortgage loan.
If the decision is positive, the maximum allowable loan amount is calculated.
Loan amount \u003d
n is the number of payment periods (months with monthly repayment);
i- Interest rate for the relevant period (per month);
P is the maximum allowable amount of the monthly annuity payment on the loan, including payments on the principal and interest.
Stage four
The credit committee examines the loan case of a potential client, the conclusion of a lawyer on the acceptability of the collateral, the opinion of a specialist in assessing the likelihood of loan repayment, makes a decision: to issue a loan, issue on condition, to refuse.
Fifth stage
The conclusion of a credit transaction includes three main points.
Conclusion of a loan agreement on a pledge agreement.
State registration of a pledge agreement. The mortgage must be registered within one month from the date of receipt of the documents necessary for its registration by the body that carries out the state registration of the mortgage. In St. Petersburg, this is the City Registration Bureau of St. Petersburg. State registration of a mortgage is carried out by making a registration record on a mortgage in the Unified State Register of Rights to Real Estate. The date of this registration record is considered the date of state registration of the mortgage.
Conclusion of an insurance contract. The set of documents governing the relationship between the parties in insurance in the process of mortgage lending should include:
· The life and disability insurance contract (policy) of the borrower (personal insurance of the borrower).
· Insurance contract (policy) for the risk of loss and damage to the apartment - the subject of the pledge (property insurance).
· The insurance contract (policy) of the property rights of the owner of the apartment - the subject of the pledge (property insurance).
Sixth stage.
Stage of servicing a mortgage loan. During the credit period, the lender monitors the timeliness of the borrower's fulfillment of its obligations, and also has the right to monitor the condition of the real estate that serves as collateral for the loan.
Servicing a mortgage loan by a bank includes:
l Collection of monthly payments for loans and insurance (write-off, deduction from salary, payment in cash);
l Drawing up a schedule of monthly payments for the borrower (for the entire loan term, annually, if conditions change);
l Maintaining reports on loans issued (balance of the principal debt, repayment of principal and interest);
l Registration of long-term payments to repay the loan (full or partial early payment, recalculation of the schedule, penalty);
l Creation of a provision for loans (1-2 risk groups);
l work with problem loans (negotiations, voluntary sale of property and loan repayment, collection of the outstanding balance of the debt on time).
Thus, operations in the field of mortgage loans require high qualifications and special knowledge from the bank's personnel. Therefore, in order to successfully operate in the field of residential mortgage lending, banks create appropriate structural units, and constantly improve the skills of bank employees.
Seventh stage
Closing a loan transaction is the final stage of mortgage lending. After the full repayment of the loan debt, payment of accrued interest and penalties, the borrower's loan account is reset to zero, and thus the credit transaction is closed, therefore, the mortgage is terminated, which is recorded in the State Register of Russia. If the borrower and the pledgor do not fulfill the terms of the loan agreement or the mortgage agreement, the lender will foreclose on the pledged property in a judicial or extrajudicial procedure. The subject of the mortgage is being sold. The funds received from the sale are used to pay off the debt to the creditor (principal, interest, fines, penalties), to cover the costs of the foreclosure procedure and the sale of the subject of the mortgage. The borrower receives the remaining funds.
Conclusion
The macroeconomic conditions that have developed in Russia as a result of the 1998 financial crisis further enhance the importance of developing long-term mortgage lending for the population, no longer as separate initiatives of commercial banks or regions, but as an integral system under the direct influence of the state.
On the basis of this Concept, regional programs for housing loans can be adopted.
Mortgage lending is one of the most proven and reliable ways to attract private investment in the housing sector in world practice. It is the mortgage that allows the most advantageous combination of the interests of the population in improving housing conditions, commercial banks and other lenders - in efficient and profitable work, the construction complex - in the rhythmic load of production and, of course, the state, which is interested in general economic growth.
Literature
1) Grudtsyna L.Yu., Kozlova M.N. Mortgage. Credit. Comments on housing legislation. - M .: Publishing house Eksmo, 2006. - 368s.
2) Dovdienko. I.V. Mortgage. Control. Organization. Assessment: - M .: UNITY - DANA, 2005.-464s.
3) Razumova I.A. Mortgage lending: Textbook. - SPB .: Peter, 2005 - 280s.
4) Filippova E.S. Housing law: Textbook for universities. - "Justicinform", 2007 - 179s.
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Features of the concept of "mortgage". The main principles of the development of the system of long-term mortgage lending in the Republic of Belarus, the period of formation, the mechanism of action. Analysis of the current legislation of Belarus in the field of lending.
abstract, added 12/11/2008
Study of the concept and essence of mortgage - one of the subtypes of pledge without transferring the pledged property to the pledgee Features of drawing up a mortgage and mortgage agreement. Typical features of the mortgage of residential buildings and apartments, social and commercial mortgages.
abstract, added 02/23/2010
Characterization of the pledge as a way to ensure the performance of obligations Types of collateral, the content of the mortgage obligation. Conclusion of a mortgage agreement and its state registration. Rights and obligations of the parties. Foreclosure on the subject of a mortgage.
term paper added on 05/15/2014
Normative legal regulation of mortgage lending. Concept, characteristics and form of a loan agreement on a mortgage. The rights and obligations of the parties under the contract. Consideration by arbitration courts of disputes related to the mortgage agreement.
thesis, added 11/23/2010
Formation and development of the legal institution of mortgage and mortgage lending. Pledge law in the Romano-Germanic and Anglo-Saxon tradition. Mortgage as a form of collateral under modern Russian legislation. The nature of collateral relations.
thesis, added 10/04/2006
Organizational and legal relations in the field of the formation of the mortgage system as a way of securing obligations in the legislation of the Russian Federation. Features of mortgage lending related to the pledge of certain types of real estate.
thesis, added 09/04/2014
Creation and termination of pledge. Conditions and form of a pledge agreement, rights and obligations of its parties. Types of pledges: leaving the pledged property with the pledger; with the transfer of the pledged property to the mortgagee. Realization of the rights of the pledgee.
term paper added on 10/07/2010
Legal framework for the institution of mortgage. Mortgage lending for housing. Features and mechanism of applying a mortgage loan. Problems of mortgage lending in the Russian Federation at the present stage. The need for and prospects for the development of mortgages in Russia.
mortgage lending loan repayment
Usually, transactions in the mortgage market are carried out in two stages. At the first stage, called the primary market, loans are granted secured by real estate. Since banks provide loans for a long term and at a relatively low interest rate. They have a decrease in the amount of available monetary resources, which are necessary to carry out daily activities. The question of how to get back the money given for a long time in the shortest possible time is called the problem of refinancing the issued loans. To solve this problem, there is a secondary market for mortgage lending. The main methods of refinancing loans are reduced either to a full assignment of rights on a mortgage loan issued by a bank to a specialized organization (two levels are obtained: a bank is a specialized organization), or to the issue of securities by the bank that issued the loan itself. When you leave claims for this loan on your balance sheet (one level - the bank). When claims on loans (mortgages) are assigned to a specialized organization, it combines monotonous mortgages in pools and issues its own securities on the security of the pools. Based on the method of refinancing mortgage loans, the basic models of mortgage lending were built - two-tier or classical and one-tier, which are also named after the names of those countries where they were most developed. The classic model of organizing a mortgage scheme was created and has been most developed in the United States of America. The impetus for the development of a mortgage strategy was the Great Depression of the 30s of the XX century, a severe economic crisis and a decline in the housing market. At the initiative of the US government, special government structures were created - the Federal Housing Administration and the Veterans Affairs Administration - that insured mortgage loans issued by banks. In 1935, the Agency for Financing the Work on Reconstruction was also created and on its basis in 1938 - the now well-known federal national mortgage association, "Fannie Mae". It was she who became the "specialized organization" that characterizes this model of mortgage lending as a two-tier one. Since 1954, Fannie Mae has been transformed into a public-private corporation, owned partly by individual shareholders and partly by the Federal Government. In 1968, the corporation was split into two corporations: Ginny Mae and the corporation that retained its former name Fannie Mae and became a private joint stock company. Fannie Mae purchases FHA and FHA insured and guaranteed mortgages, as well as conventional loans secured by mortgaged property in the form of single-family homes or apartment buildings. She acts as a long-term mortgage investor and runs a mortgage-backed securities program. In addition to its standard credit purchase programs, Fannie Mae issues its own obligations (bonds, short-term notes) and purchases securities on a contract basis. Fannie Mae issues guaranteed securities that are secured by loans from its own portfolio as well as pools of mortgages by organized lenders. Ginny Mae is an entirely public corporation operating under the Department of Housing and Urban Development. Using secondary mortgage market mechanisms, Jeannie Mae provides and also stimulates the provision of mortgage loans, as part of government priorities to assist those sectors of the housing market for which conventional lending methods are not available. Special assistance programs are carried out at the expense of loans from the State Treasury, at the expense of interest earned by its own portfolio, as well as at the expense of commissions for obligations. The securities guarantee program is funded by guarantee and filing fees paid by the issuers of the securities. Another government and "quasi-government" agency charged with organizing and servicing the secondary mortgage market in the United States of America is Freddie Mac, created by the US Congress in 1970. Freddy Mac's activities are aimed at increasing the liquidity of investments in the mortgage business, as well as creating and developing mortgage lending funds by developing a nationwide secondary market for conventional mortgage loans in the housing sector. In contrast to the classical model of mortgage lending, in the case of a single-tier model, the bank that issued the mortgage loan independently issues bond-type securities, secured, on the one hand, by the issued mortgage loans, and on the other hand, by real estate pledged by the borrowers to obtain a loan. The one-tier system is more common in Western European countries. Unlike the American one, it was formed not thanks to the decision of a separate government, but in the process of the natural evolution of the European credit system. The process of issuing mortgage bonds by banks is regulated by special laws and monitored by the banking supervisory authorities, and the activities of the banks themselves are limited to a narrow list of low-risk transactions. In addition to these models, the system of contract building savings is used in world practice. The specified model and the single-tier model of mortgage lending are combined into one model and otherwise called the German model of mortgage lending. In contrast to the one-tier model, in which banks raise funds for mortgages in the open financial market by issuing bonds, the system of contractual building savings is closed, divorced from the financial market. The principle of its functioning was adopted by our housing construction cooperatives. The principle of operation of the German system "Stroysberezhenie" can be shown by the following example: 10 people who want to build, not having sufficient equity capital, start to save money. Suppose each one needs 1 million rubles for this, but each saves only 100 thousand a year. If each one acts separately, then the person who wants to build must wait about 10 years until he can start building. If all 10 are united into a target team, the first of them can build in a year, if others provide him with their savings as a loan. In the second year, he can build a second, if the first now, instead of a savings deposit, makes a share on the return of the loan, etc. Thus, everyone achieves the goal on average twice as fast as compared to the approach in which everyone acts alone. The state encourages the desire to save and use equity capital by providing subsidies; in Germany, these grants are called "building savings premiums". Distinctive features of the German model - based on the savings system from the American model - based on the system of the secondary market for mortgage-backed securities are shown in Table 1.
It should be admitted that in terms of economic progress, the classic American model looks the most effective. Thanks to the resale of issued loans and a developed market for mortgage-backed securities, nothing limits the growth of "mortgage" capital.
Table 1 Comparative parameters of lending models
|
Compared parameters |
German model |
American model |
|
The cost of resources attracted by the bank |
Below market |
Market |
|
Getting a loan |
After passing the savings stage |
Immediately after contacting the bank |
|
Form of attracted resources |
Savings (deposit) accounts |
Mortgage-backed securities |
|
The main form of government support |
Bonus payments on deposits |
State guarantees for mortgages |
|
Lending volumes |
Limited by savings |
Limited by the borrower's solvency |
Constantly |
At the 1st stage in the formation of the market system |
|
Lending terms |
15 to 30 years old |
|
|
Credit amount |
up to 45% of the cost of the apartment |
Up to 100% of the cost of the apartment |
On the contrary, in Europe, especially before the organization of the European Union, the relatively small volumes of financial markets in individual countries hindered the development of a pan-European mortgage market, which could be compared in terms of volume with the American one. Recently, the countries of the European Union have joined forces in order to create a competitive European market for mortgage-backed securities. On the other hand, if we consider the issue from the point of view of legal organization, cultural, historical and legal traditions, the classical model is alien to European legal systems, since it is based on a different, Anglo-Saxon system of law. Therefore, the classic model in Europe will look somewhat different. A unified position of all market participants on which mortgage lending model is better to implement in the Russian market has not yet been finally formed. Officially, Russia has adopted a two-tier model of housing mortgage lending as a basis. This is reflected in the adopted Concept for the Development of the System of Housing Mortgage Lending. As conceived by the Government, the Russian two-tier mortgage system does not imply the dictatorship of the federal center and only contributes to the implementation of control, the development of recommendations, the provision of methodological assistance and the introduction of uniform generally accepted world standards and technologies. As the system develops in the regions, their own mortgage operators may be created, independent of the federal center. With the introduction of the Law "On Mortgage Securities", which provides for the possibility for banks to issue mortgages on their own, it became possible to actively develop a single-tier model of mortgage. In addition, housing construction cooperatives are actively developing, which function in the image of the German system of contract building savings. Therefore, now it is impossible to say unequivocally which model won in Russia. Most likely, both models will take root in the vast expanses of our Motherland, but in a form adapted to our conditions.