Thus the importance of existing of such associations is determined by those functions, which they realize: development of standards of mortgage crediting, assistance in support of liquidity of banks through refinancing of some types of credits, issuing of own securities for attraction of new investments in the sphere of homebuilding. It is necessary to note that this section of the market of debentures is the largest in the world in accordance with the volume of attracted capital.
The examination of the world experience of mortgage credit organization shows, that this market has considerable potential. It is important that it help to resolve one of the most sharp social question – providing the population with dwelling.
3.2. The problems. The first steps of organization of mortgage crediting In Russia.
Mortgage crediting – to great extent new for our country type of banking services, and there are serious obstacles, which impede its development. The main obstacles are insufficient normative legal examination of the question, complication of attraction of long-term resources for mortgage, estimation of different types of risks and payment solvency of borrower. All these problems impede considerably development of mortgage in Russia. However nobody doubts that it will be used in all parts in the future.
The organization of the system of long-term homebuilding mortgage crediting in Russia becomes complicated because of some circumstances. The high and unstable rates of inflation determine potentially important risk of interest rates in the case of long-term crediting. The risk of homebuilding crediting, connected with the possibility of using of home property as a collateral, increases also because of insufficient legal examination of the question of possibility for the bank of making claim on mortgaged property of the client in the case of nonpayment of the credit by the borrower. The genuine experience of mortgage operations does not exist, and 1500 commercial banks, which function now, form bad controlled and not very reliable system.
However, in spite of all problems, some process in development home crediting is reached for all that. The interest of the banks to these operations can be explained, first, by existing already now of real solvent demand on long-term home loans and , second, by foresight in the future of the large market for mortgage credits, and understanding of the fact, that now it is possible to occupy good position for receipt in the future of the share on this market.
The creation full legislative normative base will provide the passage to the civilized forms of mortgage crediting, to the mass development of mortgage. As we already noted the result of large and difficult work was adoption by the State Duma of the law of Russian Federation “On mortgage”. From the point of view of association of mortgage banks the adopted law on the whole is in conformity with the purposes and the tasks of development on the legislative basis of civilized mortgage of home crediting. However this law is ideal, it can be tested by the practice, by life.
The difficult position was formed in the practice of mortgage crediting in the agricultural section. The situation is there so that many farmers have accounts in the local banks, but all the accounts are empty. In particular, in accordance with the information of the Institution of business development, after decrease of interests rates on deposits the confidence of the farmers to the banks reduced in catastrophic manner.
The peasants now prefer to act by methods related to natural economy. And also the banks do not invest willingly money into agricultural section. First, agriculture – it is object of crediting, connected with the high risk because of its dependence on factors which cannot be forecast. Second, the existing legislation limits the right to consider as collateral agricultural property, that is land. Absence of legislation of land finally influences not only on the sphere of mortgage crediting, but on many other factors of the market. However, if to speak about private property on land, it is hardly possible that after adoption of this law today to-morrow we will get high-developed market of mortgage crediting in agriculture. It is necessary to recall the example of Lithuania where in the period of government of Pruskene the land was distributed practically free of charge, however the peasants did not want to take it. It is possible that the reasons here are deeper, and even not legal or economic, but psychological . You know, before 1917 the secondary market of mortgage developed in Russia rather successively, however compulsory interruption of seventy years odd not only cancelled mechanism of its activity, but led to psychological negative attitude of people to possibility of undertaking any responsibility. It is absolutely that the above-mentioned has large meaning in the idea of organization of mortgage crediting, but it is more important in this relation realization of already adopted and confirmation of acts and decrees on home questions not adopted yet, because mortgage home crediting occupies leading positions in this section.
At the same time the laws, adopted by the State Duma “On mortgage”, “On state registration of rights for the real estate and transactions on them”, do not signify the large spreading in the regions of the country of civilized principles of mortgage crediting, because the financial credit institutions, the banks cannot independently resolve questions of assurance of liquidity in the case of long-term crediting.
This problem shall be solved with help of the institution of secondary market of mortgage credits, it is necessary to create special body, which issues securities, guaranteed by the government. The Association of mortgage banks from the first days of its organization works for organization of Federal Agency on home mortgage crediting, in which the role of the state from the point of view of participation and support is high especially on this stage of the beginning of civilized mortgage. It is expedient to consider the mortgage system organized by the government of Moscow.
3.2.1. The chart of mortgage crediting on the pattern of Moscow mortgage program.
Taking into consideration the large concentration of banks, realty firms and other organizations on the real estate market in Moscow and the experience of financing of transactions with it, the local market of mortgages is organized in the city which will take part in the future in the federal market in the case of its organization.
The basis and the point of the beginning of realization of this idea can be the Decree of the city Government N365 from the 25th of April 1995 “On principles of mortgage crediting in Moscow”.
As we already noted, in the developed countries the organization and the regulation of mortgage market as a rule are effected by some state or private organization which acts on behalf or by order of the state, as for instance “Fenni May” in the USA. In Moscow the similar city organization is formed for realization of these functions under control of the Commission on securities – Moscow Mortgage Agency (MMA). /Appendix 1/
The Agency is formed as a municipal organization with the next gradual sale of its assets to private organizations. It works with narrow contact with the government of Moscow, under its direction and control. It participates in development of programs of financing of real estate market in Moscow, in development of securities market of the city, in their realization together with appropriate departments of the government.
The general purpose of MMA – assurance of mortgage crediting by financial resources and the guarantees of their return on mortgage loans, issued by the banks. There are the following functions, realized by the agency:
Purchase from banks of mortgage credits, forming in necessary cases of their pools and sale to other banks, insurance companies and other financial structures;
Realization and organization of issue and distribution of securities on credits bought from the banks;
Sale of the right of participation in credits on the base of agreement and forming of pools of mortgage credits;
Guarantee of return of means, issued by the banks in the form of loans in accordance with the programs of MMA;
Realization of certification of participants of mortgages secondary market ;
Development and realization of charts of mortgage crediting and secondary market in the limits of MMA;
Organization of preparation of skilled specialists on mortgage, preparation and realization of attestation of organization of participants of mortgage market in the city.
Mechanism of functioning
The bank which granted mortgage credit, sells it to MMA and by this method gets the possibility to grant this amount once more. The bank is obliged to service credit (collection of payments and alienation of property in the case of non-return of credit). The payments on the amount of credit are transferred through the bank to MMA. The amount of credit rate shall be divided between the bank (payment for service) and MMA (payment for resources).
In the case of resale of credit (MMA purchases from the creditor the credit and sells it to other bank) the cession of requirements shall be formed (article 380-382 of the Civil Code of Russian Federation, part 1). Primary creditor can serve such credit, who bears responsibility only for quality of service.
In the case of necessity of crediting of transaction on object of high value, when even large bank cannot (or does not want) grant loan, MMA forms credit pool for such amount. After purchase of the share of participant in the credit pool, bank buys the right for receipt of determined interest from the flow of earnings, received on credits, and also in proportion from it the rights for mortgage on credit. MMA issues and distributes for the amount of bought mortgage credits the securities, which have profitability equal to interest rate of credit less incomes of the bank and MMA. The securities have different periods of turnover and naturally different rates. For the purpose that the securities on mortgage were profitable for investor , their profitability shall be for some points above the profitability of the state securities. All securities of MMA have guarantees of the Moscow government.
MMA provides for the bank of creditor the return of amount of the credit granted by him. The borrower realizes monthly payments on credit to the bank-creditor in accordance with the schedule of payments, stipulated by credit agreement. The amount of return of indebtedness on credit is spent for covering the amount of securities of MMA. The bank transfers some part of credit rate , equal to income of the agency, stipulated in it, on its settlement account, and the balance is income of the bank. The difference of the time of securities redemption which have different period of turnover and issued on mortgage credits of several banks, and which have different time of payment on them , smoothes over the peaks of disparity of need and availability of credit resources of the banks participants of MMA and possible presentation to payment of securities. In the case of exceed of such resources the bank can participate in credits of other banks immediately or by purchase of securities of MMA, and on the contrary, in the case of their shortage, attract resources of other banks or sell securities to MMA.
The agency on separate pools of mortgage credits realizes their sale to other financial companies of Moscow and other cities and regions. Thus, from one side , rather free financial resources of participants of financial market will be attracted to Moscow, from other side, rather free for this moment financial resources of Moscow will be transferred to other regions for decision of problems of homebuilding and home purchase by population of other cities and regions.
At the present time the range of problems exists, which impedes development of mortgage crediting. The general instability of economy, low level of incomes of majority of population by comparison with the cost of dwelling, high taxes and inflation can be taken to the factors, which influence negatively on the development of mortgage.
But the most serious problem – it is insufficient help of the state in financial, organizational and legislative questions. The state in the countries with developed system of mortgage crediting, especially on the first stage, undertakes financial support of long-term crediting. The state support can be realized either with help of privileged taxation of the banks, constructors and other subjects, connected with the operations of construction financing or dwelling purchase, or with help of subsidies of the borrower. The organized help is necessary, first of all, for organization of the above-mentioned Federal Agency on mortgage crediting, which could buy from the banks credit obligations and issue securities under pledges, providing in this form the liquidity of mortgage credits.
Conclusion
Summing up, it is necessary to note that the detailed consideration of such type of credit services as mortgage credit shows its big potential in Russian conditions. Russia – the country of enormous land riches and exactly mortgage of land, and also of fixed assets of many enterprises can provide means for transformation of production into the market conditions.
Mortgage crediting – to great extent new for our country type of banking services, and there are serious obstacles, which impede its development. The main obstacles are insufficient normative legal examination of the question, complication of attraction of long-term resources for mortgage, estimation of different types of risks and payment solvency of borrower.
All these problems impede considerably development of mortgage in Russia. However nobody doubts that it will be used in all parts in the future. That is why farsighted bankers try already now to understand this profitable and perspective niche, the more so as there is no serious competition on the present market. Even in the existing legal and economic situation several charts of mortgage crediting have been already developed, which permitted to realise these operations with profit and with minimum risk.
The possibility of using of mortgage for homebuilding crediting helps to decide not only the task of financial assurance, but also the sharp problem for Russia of dwelling.
Список литературы
The Civil Code of the Russian Federation, 1995
2. Federal law №. 102-FL of July 16, 1998 On Mortgage (Pledge of Real Estate)
3. Federal law of the Russian Federation №. 122-FL of July 21, 1997 On the State Registration of rights To real Estate and of Transactions with it
4. Federal Law №.135-FL of July 16, 1998 on Evaluation Activity in the Russian Federation
5. Decree of the President of the Russian Federation №. 293 of February 28, 1996 on Additional Measures for the Development of credit on Mortgage
6. Mortgage residence credit in USA, M.V. Boiko, 1998
7. Credit risk insurance, K.I. Bubnova, Realtor, n.3, 1998
8. Special German credit organizations, A.V. Kocharev, 1986
9. Fundamentals of mortgage credit organization, B.A. Kudrjavseva, 1998
10. Situation in Russian agriculture in transitional period, V.I. Nazarenko, State agricultural research institute, 1994
11. The beginning of mortgage in Russia, N.A. Proskurova, Mortgage- the finansing of future, n 3-4, 1995
12. Recommendations on Land market formation and using, N.A. Zhuravlev, Novosibirsk, 1994
13. The Appraisal of Real Estate, American Institute of Real Estate Appraisers, 1996
14. Land Law in action. The Swedish Ministry for foreign Affairs. Royal Institute of Technology. Sweden. 1997