Two-tier model of housing mortgage lending. Main models of mortgage lending Modern models of mortgage lending

There are two main models of mortgage lending. Let's consider each of them separately. To begin with, let's dwell on the American model, since it is on its basis that mortgage lending models are organized in Russia.

American model of mortgage lending

The first is two-level, it is also called the "American model". It relies primarily on the secondary market for mortgages. valuable papers. The essence of the American model of mortgage lending can be characterized as follows:

1) Commercial or National Bank issues a mortgage loan to the borrower, provided that he undertakes, within a certain agreed period, to monthly transfer to given bank fixed amount Money. This obligation of the borrower is secured by the mortgage of the property being acquired.

2) After issuing a loan, the bank sells this loan one of the specialized mortgage lending agencies, at the same time transferring to it the security obligations. The agency immediately reimburses the bank for the funds issued to the borrower and in return asks to transfer the monthly payments received to pay the debt (excluding the profit (margin) of the credit institution) to the agency.

3) Mortgage agencies after purchasing a certain amount mortgage loans banks form them into pools and, on the basis of each, create new securities, the source of payments for which are payments from borrowers. These payments are no longer guaranteed by real estate, but by a mortgage agency acting as a legal entity. Mortgage agencies sell mortgage-backed securities on the stock markets, as a result of which their profit, as well as the profit of banks, is a margin. 8, p.34

German model of mortgage lending

The second model of mortgage lending is a single-level "German model", which is an autonomous and balanced mortgage model and is based on a "savings and loan" system of functioning. This system It is built according to the type of German "private construction savings banks" - Bausparkasse or - American Savings & Loans, or - French Livret Epargne Logement. With this model, investors get the opportunity to accumulate (accumulation takes place on the savings bank account) a certain necessary contribution for the purchase of a house or apartment (it can be 30-50% of the cost), and then receive a mortgage loan for the missing amount. At the same time, all available cash funds accumulated by depositors and own funds can be used only for the purpose of carrying out statutory activities, that is, for issuing mortgage loans.

Model of mortgage lending in Russia 13, p.58

The mechanism of functioning of the mortgage lending system currently in force in Russia can be represented as the following stages of mortgage lending:

1) Preliminary stage (at this stage, the client is explained the main conditions for the implementation of lending and a list of documents required for obtaining a loan is transmitted);

2) Collection and verification of the provided information about the client and collateral;

3) The probability of loan repayment is estimated;

4) The stage of making a decision on the loan (the amount, repayment procedure, term, interest rate is determined);

5) At this stage, a loan agreement is concluded;

6) Loan servicing;

7) Closing the loan deal.

In figure 1, below, the mortgage model is shown in the form of a diagram.

Figure 1 - Scheme of the mortgage lending model 11, p.16

Consider the model of mortgage lending in Russia in more detail

During the preliminary stage, the borrower must familiarize himself with all the necessary information about the lender, the conditions for granting a mortgage loan, about the rights and obligations that arise when concluding a credit transaction.

Further, after explaining to the borrower the terms of lending, employees of the credit institution determine the maximum possible amount of funds that the bank can provide on credit, agree on lending procedures and the procedure for settlements, draw up approximate estimate expenses of the borrower and fill out an application for a loan. This statement considered by the lender as one of the most important sources of information about a potential client.

In Russia and the world there is a gold banking rule, the essence of which is as follows: the borrower must spend no more than 30% of personal monthly income. If given share more (40-60%), then such a loan is already becoming risky. That is why the bank estimates the amount of credit that it can provide based on the income of the borrower.

In case of a positive decision on mortgage loan the borrower and the bank conclude a loan agreement for the purchase of a selected, pre-agreed residential property. The mortgage agreement contains information about the subject of mortgage, its valuation, substance, as well as information about the amount and timing of fulfillment of the obligation secured by the mortgage. It should be borne in mind that the mortgage of houses and apartments that are state or municipal property is not allowed.

After the conclusion of the mortgage agreement, commercial banks typically require the borrower to make a down payment, the amount of which may fluctuate depending on the conditions mortgage program. At the same time, creditor banks are interested in making this initial contribution as large as possible, since the larger the contribution, the less risk the transaction has.

Further, as in the American model of mortgage lending, borrowers' obligations secured by the pledge of acquired real estate are issued in the form of mortgages, the pools of which are sold to mortgage agents that form the mortgage coverage of mortgage-backed securities. Also, commercial banks that meet the requirements of the Bank of Russia can themselves form mortgage coverage and issue mortgage-backed securities.

Comparative analysis various models of mortgage lending, operating abroad, will identify the most suitable for modern Russia approaches to the organization of the system of mortgage housing lending.

The main models of the system of mortgage housing lending abroad are currently: truncated-open model; extended-open model (American) model of balanced autonomy (German).

Since the allocation of these models is conditional, in one country they can function simultaneously. Each model of organizing a system of mortgage lending includes a certain set of basic elements.

The simplest system should be considered a truncated-open model of mortgage lending (Figure 2) 12, p.16. The essence of this model is as follows. Banks issue mortgage loans secured by real estate, including residential property, and on the basis of the resulting pool of mortgages issue their own securities - mortgage bonds. The sale of mortgage bonds provides banks with replenishment of "long" money resources for issuing further loans. Thus, mortgage loans are refinanced, which ensures the balance of the bank's assets and liabilities in terms of maturity.

Figure 2 - Scheme of a truncated-open system of mortgage lending

The second of the most common models of real estate mortgage lending in the world practice - the American one - assumes the existence of a developed secondary market for mortgage loans (Figure 3) 12, p.16.

The essence of the model is that funds for refinancing mortgage loans are attracted by lenders from the stock market through intermediaries. The main thing in this model is the separation of the subjects of the creditor and the investor.

Figure 3 - Scheme of the expanded-open model of mortgage lending

key hallmark a balanced model of autonomy is the savings and loan principle of its functioning (Figure 4) 12, p.16. The formation of credit resources is carried out at the expense of the savings of depositors who wish to receive a mortgage housing loan in the future. The essence of the German model of mortgage lending is to create a closed mortgage financial market. It is formed around specialized savings and mortgage institutions

Figure 4 - Scheme of the balanced autonomy model

The main characteristics of the presented models are reflected in the following table

Table 1 - Characteristics of various models of mortgage lending

Compared parameters	Truncated Open Model	Extended open model	Balanced autonomy model
Distribution countries	Eastern Europe, England, Spain, Denmark, etc.	USA and other developed countries	Germany, France, Austria, Spain, Chile, Thailand, Czech Republic, etc.
Operating principle	market (depending on general condition financial and credit market of the country)	Savings and loan (model standalone)
Sources of attraction of credit resources	Own And borrowed funds Banks	Mortgage-backed securities traded on the secondary market, as well as own and borrowed funds of banks	Housing savings and housing contractual savings of future borrowers, as well as own and borrowed funds of banks
Main creditors	Universal and mortgage banks	Mortgage & Savings Banks	Mortgage banks, specialized savings banks (savings banks and construction savings banks)
State support format	Not defined	Refinancing loans in times of crisis	Subsidies for building savings

The simplicity of organizing the functioning of the truncated-open model determines its wide distribution in the world, especially in developing countries. However, the shortcomings of the model (dependence on the market level of the interest rate, the absence of strict standards, the limited number of attracted credit resources) hinder its development in Russia.

Attempts to develop the American model of mortgage lending as national model mortgages have been undertaken in Russia since the second half of the 90s. However, due to a number of reasons (the advantage of foreign sources of funding, insufficient governmental support) the two-level model has practically ceased its development and has now given way to the continental one-level model, which turned out to be more stable during the crisis due to a number of advantages: complete independence from the financial market; reduced credit risk; availability of loans to a significant part of the population

There are serious obstacles to the functioning of the savings mortgage system in Russia: no the legislative framework for the functioning of construction and savings banks; the mass distrust of the population in financial institutions persists, in the conditions of high inflation and rising prices, savings are depreciated, which is why the purchase of an apartment using this model is postponed to ever later dates2, p.16.

Thus, having compared the positive and negative features of each of the models, we analyzed the possibilities of their use in Russia. It would be rational to be guided by the general principles of building a system of mass "market" mortgages, given national characteristics Russia. At the same time, it is necessary to start with strengthening the institutions of trust in the housing construction system (increasing the responsibility of developers, guaranteeing the rights of equity holders, observing deadlines for commissioning, fixing prices as much as possible, and other aspects), developing mechanisms social mortgage and raising the level of state guarantees, and only after that - the formation (activation) of independent credit and financial mortgage institutions.

The mortgage market around the world works in two directions: the issuance of loans and their refinancing. The uniqueness of this market lies in the fact that it is a link between two huge economically important segments: the real estate market and the financial market. Today, in the world practice, there are many mortgage lending instruments, as well as several mechanisms by which credit institutions refinance the issued funds, for example: issuing mortgage-backed securities, creating mortgage-backed shares investment funds or their analogues, resale of pools of mortgages.

The system of mortgage lending means the creation of appropriate institutions and well-established mechanisms that would ensure the possibility of effective mortgage lending.

To form a well-coordinated and efficiently functioning system of mortgage lending, first of all, it is necessary to have a functioning system of mortgage lending institutions, including banks and other mortgage lending institutions directly engaged in mortgage lending. credit operations. The effectiveness of the functioning of this system largely depends on the level of infrastructure development, including the system for registering the turnover of real estate, the system for professional assessment of the value of real estate, Insurance companies, as well as institutions that organize activities in the secondary market of mortgage loans, and some other elements.

Setting the task of creating a holistic market system mortgage lending, focused primarily on the use of effective standard financial mechanisms, it is necessary to take into account the possibility of applying housing financing schemes aimed at the use of local resources and reflecting the specifics of individual regions. In transitional conditions of the formation and creation of a system of mortgage lending, such schemes can help solve housing problem a certain part of the population, although due to the limited local resources, their focus on regional features, the scale of their implementation is limited 19, p.55.

The main goal is to create a working system for providing affordable housing for Russian citizens with average incomes, based on market principles for acquiring housing in a housing market free from monopoly at the expense of citizens' own funds and long-term mortgage loans.

Mortgage relations have a huge potential that is not fully realized in the housing sector, although it is these relations that are the effective tool that allows you to solve a number of pressing problems:

1) ensure long-term and strong integration of the real estate market and the financial market;

2) to ensure a sparing regime for the acquisition of housing by citizens;

3) increase investment activity in capital construction.

Depending on the cost of housing, sources of funds, solvency and category (including rights to benefits) of citizens who want to improve their living conditions, there are several housing strategies:

a strategy designed to provide government subsidies and assistance to enterprises;

a mixed strategy based on the use of state subsidies and citizens' own funds;

market strategy focused on own funds citizens.

The activities of mortgage market entities, primarily citizens-borrowers and lending banks, especially during the formation and establishment of the system of mortgage lending, are practically impossible without special measures to support the municipality.

The territory as a whole benefits from the introduction of the administrative foundations of the mortgage lending system. Municipal authorities stimulate the process of housing construction, and hence the growth of tax revenues, but at the same time minimize their risks, receiving, if a citizen fails to meet the conditions for lending for the needs of the city, either new apartment, or a re-occupancy apartment.

Currently, loans offered by banks for the purchase of housing are available to a limited number of people. Creation of a mortgage lending system with built-in legal and economic mechanisms for limiting risks, mobilizing financial resources can significantly reduce the cost of mortgage loans and turn them into effective remedy solving the housing problem for Russian citizens.

The development of mortgage housing lending to the population as complete system, on the one hand, and as an integral part market economy On the other hand, it should be based on the following fundamental principles:

1) When creating a system of mortgage lending in Russia, it is necessary to take into account the existing international experience. At the same time, one should proceed from Russian macro economic conditions and legal framework, take into account the fact that the population of Russia is still wary of the situation of long-term dependence on the creditor bank in mortgage lending.

2) One of the key requirements is to ensure the availability of mortgage loans for population groups not only with high, but also with average incomes. At the same time, the system should be of a market, not a subsidized nature, be completely transparent and understandable to all participants in the mortgage lending process.

3) A prerequisite is the constant development of the system, reliance on the effective use of the attracted financial resources of citizens, commercial creditor banks, investors, and not on financing from the state budget.

4) The system of mortgage lending should be reproducible in any region of the country. The pace and scale of the introduction of mortgages in certain regions are determined not so much by subjective factors of the presence or absence of political will from the leadership of the region, but by the objective economic situation, the availability of solvent demand for housing and its supply.

5) A special requirement is multivariance, openness of the system.

6) Exceptionally important aspect the state policy aimed at the development of mortgage lending is the formation of macroeconomic conditions and institutional environment that contribute to increasing the availability of mortgage loans for borrowers. This refers to a set of measures to control the level of inflation, the dynamics of the ruble exchange rate, to reduce interest rates, restructuring banking system, development of the regulatory and legislative framework.

7) Solving the housing problem and coordinating the activities of all subjects of the housing market largely depends on the activities of executive authorities at all levels. In this regard, the role of regional and local authorities at the stage of creating a mortgage lending system is growing. 20, p.118

The formation and progressive development of the system of long-term mortgage lending is hampered by a number of problems: imperfection of legislation; inefficiency of the system of registration of rights to real estate and transactions with it in the institutions of justice; insufficient development of appraisal and insurance business; lack of specialized mortgage banks; high cost of credit resources of commercial banks; lack of a secondary market for mortgages (mortgage loans); high stakes refinancing; lack of effective mechanisms to limit the risks of banks and cover from outside government agencies; high cost of loans for the borrower; low income the majority of the population compared to the cost of housing; flaw budget funds to provide housing subsidies socially vulnerable citizens, which would reduce the credit burden when purchasing housing; imperfection of taxation, insufficient number of incentives for citizens to invest in housing.

Experts offer the following main directions for solving these problems:

1) Improving the legislative and regulatory framework, which ensures the fulfillment of obligations in mortgage lending, primarily in terms of creating a clear procedure for foreclosure on the subject of mortgage and eviction of a defaulter on a loan from mortgaged housing;

2) Creation and implementation of a universal mechanism for ensuring the inflow of long-term financial resources;

3) Tax incentives for citizens - recipients of mortgage loans, on the one hand, and commercial banks - mortgage lenders and investors providing refinancing of commercial banks - lenders - on the other;

4) Creation level playing field for free competition between the subjects of the mortgage market;

5) Creation of mechanisms for social protection of the borrower in case of illegal actions of creditor banks, as well as for its social adaptation during the eviction procedure, due to the impossibility of repaying the previously taken mortgage loan;

6) Refinement of the regulatory framework governing activities credit organizations providing and servicing long-term mortgage loans, as well as their refinancing;

7) Formation of regulatory and legislative framework for the use of new financial instruments(securities) in order to attract long-term resources in this area.

In addition, it is necessary to provide for a number of special housing benefits for banks engaged in mortgage activities. A fairly effective measure could be the introduction of a procedure in which banks that open housing deposits and mortgage lenders have the option of deducting taxable income by the amount of long-term home loans issued, or are exempt from taxes on income derived from mortgage loans. In addition, according to experts, it should be released from reservations or reduce the norms required reserves deposited by the bank in the Central Bank of the Russian Federation, for funds received on housing deposits. 16, p.71

Attracting external resources for residential mortgage lending is constrained high level risk. Under these conditions, the state should in every possible way contribute to attracting funds for renovation and the creation of fixed assets. In practice, reverse processes occur. The government securities market absorbs financial resources and makes them prohibitively expensive, taxes unnecessarily increase the investment value.

We believe that specific support from state bodies in relation to the system of mortgage lending can be expressed in the following forms:

1) Giving the system of mortgage housing lending the status of a municipal one;

2) Priority allocation of sites for development (without any additional conditions) to implement the system;

3) Removal or significant reduction of the financial burden on system participants by reducing infrastructure costs and other benefits;

4) Separation from the federal, city or local budget gratuitous subsidies for the construction or purchase of housing;

5) Providing citizens preferential terms lending;

6) Adoption of collateralized lending regulations (at the local level), in which the municipal government acts as a guarantor for loans for the implementation of high-impact projects, if these projects meet the priority areas of urban development, and the borrower - the established criteria;

7) Issue of municipal securities, which, along with ensuring the inflow of funds into development programs, can be pledged to secure loans attracted by investors for the implementation of projects needed by the city;

8) Issuance of bonded loans secured by land and real estate.

In the current conditions, when measures are being taken to stabilize the economy and reform the credit and financial sector, the formation of a system of mortgage lending is becoming one of priority areas state policy. It is no coincidence that the Government of the Russian Federation approved the Concept for the Development of the Housing Mortgage Lending System. It is focused on creating a system of efficient and large-scale long-term mortgage lending to the population. As the main task of the state, the Concept puts forward the creation of a legislative framework and regulatory framework for the mortgage lending process in order to reduce financial risks and improving housing affordability. Along with the Concept, the Decree of the Government of the Russian Federation approved the Plan for the preparation of draft regulatory legal acts that ensure the development of the system of mortgage lending in Russian Federation. It is clear that the current legal framework is not complete enough, has internal contradictions, which, in particular, prevents banks from effectively participating in mortgage lending. The adopted Decree makes it possible to eliminate many obstacles to the development of mortgages.

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Branch of St. Petersburg State University of Engineering and Economics in Cherepovets

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in the discipline "Housing law and housing policy"

«Basic models and stages of mortgagelending"

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Valigura T.V.

Cherepovets, 2009

Introduction

A mortgage is one of the exploits of a pledge without transferring the pledged property to the mortgagee. Mortgage (from the Greek hypotheka - pledge, mortgage) is a pledge of real estate to secure the monetary claim of the creditor-mortgagee against the debtor (mortgagee). In Russia, the mortgage procedure is regulated by the Civil Code of the Russian Federation, Federal Law No. 102-F3 of July 16, 1998 “On Mortgage (Pledge of Real Estate)” and other regulatory legal acts. A pledge is recognized as a mortgage land plots, enterprises, buildings, structures, apartments and other real estate.

By virtue of a 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 preferentially over other creditors.

Thus, a pledge is one of the ways to ensure the proper performance of obligations. In comparison with other methods of ensuring the fulfillment of obligations: a penalty, a deposit, a 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 make a forced collection with its use. The pledge assumes that the debtor has property that can be foreclosed, however, the property on which the mortgage is established remains with the pledgor in his possession and use.

The purpose of this work is to consider what models of housing lending are. And what are the stages of housing lending?

1. Main models of residential 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 an obligation to transfer a fixed amount to the bank every month for a certain period. This obligation of the borrower is secured by the mortgage of the acquired housing. The bank sells the loan to one of the mortgage lending agencies, transferring the collateral obligations as well. The agencies immediately reimburse the bank for the funds paid to the borrower and in return ask them to transfer the monthly payments received from the borrower minus the profit (margin) of the bank to the agency. the value monthly payments, i.e. the rate at which the agency undertakes to purchase mortgage loans is set by the agency on the basis of the requirements imposed by investors on the yield of financial instruments. Mortgage agencies, having bought a certain amount of mortgage loans from commercial banks, collect them in pools and create a new security on the basis of each, the source of payments for which are the payments of borrowers. These payments are guaranteed not by a pledge of real estate, but by an agency like legal entity. Agencies sell mortgage-backed securities on stock market and then they also act as intermediaries, transferring to the investor who bought the security, payments to the agency from the bank, minus their margin.

In the US, mortgage-backed securities rates are only slightly higher than those on government securities, reflecting investors' confidence that in the event of a massive default by borrowers, the government will provide the necessary financial assistance to mortgage agencies to repay their obligations. State support makes it possible to consider the securities of mortgage agencies as almost risk-free and allows the most conservative investors to invest in them, such as pension funds and, consequently, provides a flow into mortgage loans of the cheapest resources on the market.

2. Single-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 authorized capital and has based on it own source funds (including the housing fund) for issuing loans. All funds of the cash desk (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 built apartments.

2. The main stages of mortgage lending

Registration, conclusion and maintenance of a credit transaction is a lengthy process that requires careful study of the decisions made. In order to shorten the procedure for applying for a loan and for the lender to obtain comprehensive information about the client, credit institutions have developed standard forms of documents. For example, for home loans, this is a loan application, statements of deposits and employment, a calculation of the cost of obtaining a loan, and credit report. For profitable real estate, the list of information should be much wider. The main focus here is on the quality of property management, assessing the property's ability to generate income necessary to repay the loan. For this, in particular, the value of operating expenses, their distribution between the borrower and the tenant are analyzed, 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 clarified.

There are the following stages of mortgage lending:

1) preliminary (clarification to the client of the main terms of lending, transfer of a list of documents for obtaining a loan);

2) collection and verification of information about the client and collateral;

3) assessment of the probability of loan repayment;

4) making a decision on the loan (amount, term, interest rate, repayment procedure);

5) conclusion of a credit transaction;

6) servicing a credit transaction;

7) closing a credit deal.

First stage

At the stage of pre-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 apply for a housing mortgage loan and who have intentions to purchase housing.

2. Clients receive necessary information regarding the procedure and conditions for the provision by the bank of housing mortgage loans to the population, including:

l the requirements of the bank to the solvency and creditworthiness of the borrower, to the security of the loan, to the subject of collateral, to the assessment collateral, to insurance;

l list of documents;

l the procedure for concluding a loan agreement and a contract for the sale and mortgage of an apartment, including the procedure for performing all actions related to the mandatory state registration real estate pledge transactions, the need for notarization separate documents; the procedure and terms for granting and repaying a loan, the rights and obligations of the creditor bank and the borrower client, etc.

3. A preliminary calculation is made of the maximum allowable loan amount, the client's monthly payments to repay the loan and interest on it, the approximate amount of own funds that the borrower must have.

Pre-qualification does not require credit approval.

Second phase

A client who has passed the pre-qualification 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;

· A 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.

Third stage

The main stage is the assessment of the probability of loan repayment by a potential borrower (borrower underwriting). At this stage, the collected and documented information is analyzed, which includes:

Evaluation of the solvency of a potential borrower (its readiness to fulfill the accepted financial obligations based on an analysis of his credit history);

Assessment of the sufficiency of own funds (and the source of formation) that the potential borrower has to pay down payment to buy a home and pay all other necessary expenses.

Borrower selection criteria in various banks may differ, but, as a rule, when granting a mortgage loan for the purchase of housing, the lender pays attention to the following main points.

1. 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 on a housing mortgage loan to the total income cannot exceed 40%:

P= Monthly payment to repay the principal and interest on a mortgage loan ( annuity payment) borrower, $

D= 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. More details on the mortgage debt ratio will be discussed below. and income of the borrower in the following amounts:

l if the K / Z ratio is less than or equal to 50% (0.5), the value of the P / D ratio is 50% (0.5);

l if the value of the short circuit coefficient is greater than 50% (0.5), the following table is applied (Table 1):

Table 1. The limit value of the P / D coefficient depending on the coefficient of short circuit

Monthly income of the borrower, indicated in living wages (PM) PM - value living wage per capita in St. Petersburg, established by the order of the Government of St. Petersburg (Committee on Labor and social protection population). per 1 family member	P/D ratio value















5.0 or more

b) The ratio of the monthly long-term liabilities of the borrower (net of insurance, tax and other payments on the acquired property) to the total income cannot exceed 60%:

Coefficient O1/D =. (2)

O1= The amount of mandatory monthly payments, in which the monthly housing costs are included only in the part of the annuity loan payment, $

D= sum of monthly total income (net income), $

For a more accurate analysis of the borrower's solvency, reference coefficients can be additionally calculated:

Coefficient W/D= (3)

AND= monthly expenses of the borrower on the acquired property (including payments for insurance, property taxes, etc.), $

D = amount of monthly total income (net income), $

Coefficient O2/D= (4)

O2 = The total amount of the obligatory monthly payments of the borrower, $

D= Sum of monthly total income (net income), $

The list of income and expenses taken into account when calculating the solvency of the borrower is presented in Table. 2

When calculating the solvency of the borrower, only a part of the income from rent, which can be seen from Table. 3.

In addition, if the net income from rent (hiring) is more than 50% of the net total income borrower and the amount exceeds $500 per month, then to include it in the total income of the borrower, the following formalities must be observed:

1) the level of income received from the rental of housing for rent of the property must pass independent evaluation by a licensed appraiser, and if the appraisal is by a licensed appraiser, and if the estimated value of rental income is less than documented, the underwriter should be guided by the estimated value for all subsequent calculations.

2) the borrower must insure:

l against the risk of damage to the property leased for an amount not lower than the loan amount, increased by 10%;

l his civil liability as the owner of the rental property.

3) provide a certificate from the Unified State Register of Rights on the absence of encumbrance on the leased property.

table 2

Income and expenses taken into account when calculating the solvency of the borrower Annual payments are divided by 12 and are recorded as monthly. Can be accumulated in a deposit account.

	Name of indicator	What does it include
	Monthly mortgage payment	Payment of principal and interest
	General monthly payment home mortgage loan	payment of tax on acquired property; monthly payment for life and disability insurance of the borrower; monthly payment for insurance of real estate pledged; monthly payment for loss of ownership insurance of the owner of the apartment; payment for maintenance services (regular mandatory contributions associated with the operation of residential premises (payment, gas, repairs, cleaning, etc.); other expenses for the acquired housing, if they are of a regular nature
		Payments on existing loans; obligatory payments; alimony paid; the borrower's monthly existing expenses related to the borrower's property (property taxes, real estate insurance, maintenance fees, other possible regular fees and charges related to the operation of the housing); 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 the maintenance of the life of the borrower and his family (food, education, medical care); expenses related to recreation, entertainment, expensive hobbies; other fixed and obligatory expenses borrower, held monthly or at other intervals during 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 work part-time and not at the main place of work; income in the form of dividends on bonds, shares, from participation in other (non-joint stock) economic companies; income in the form of interest on deposits and in the form of constant 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 to what extent the bank's client is responsible for the implementation commitments made, as well as the amount of the outstanding balance of the debt at the moment, the term and amount of monthly payments on account of its repayment.

3. Sufficiency of own funds available to the potential borrower to pay the down payment for the purchase of housing.

The Bank determines the main requirements for financial opportunities borrower. The amount of the down payment when buying a home, as a rule, must be at least 30% of the price of housing. In addition, the borrower must have sufficient own funds to cover the costs of the loan transaction and the purchase of a home, which include:

l commission to the real estate company (if necessary);

l fee for assessing the value of the subject of collateral (apartment);

l fee for providing the necessary certificates for the purchased property (including the absence of collateral) (CMJ) (Bureau technical inventory, Moscow City Committee for State Registration of Rights to Real Estate and Transactions Therewith, Moscow Regional Registration Chamber);

l fee for notarization of the mortgage agreement (if required by the bank);

l fee for state registration of an apartment mortgage agreement;

insurance fees;

Bank fee for applying for a loan;

Fee for opening a loan account;

Fee for issuing a cash loan;

Other expenses.

The Bank also evaluates the sources of funds. Acceptable sources are:

Borrower savings;

Own funds of the borrower received by him from the sale of his property. The sale must be made before the loan is received;

Gifts from family members with written confirmation that payment will not be required on them;

Gifts and grants from non-profit organizations with written confirmation that they will not require payment;

Gifts or grants from an employer made under an employee assistance program that do not have to be paid back or are payable after the first mortgage is settled.

4. Loan collateral level

Before making a decision on the possibility of granting a loan for the purchase of a certain apartment, the bank must make sure that the property purchased at the expense of loan funds the dwelling complies with the credit collateral requirements.

The maximum loan amount that can be issued to a 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 collateral).

Coefficient K3= (5)

This ratio is usually 70-80% appraised value or selling price property to be acquired, whichever is less. But it can reach 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 allocate a significant portion of income to housing expenses

Prospects and stability of the position, field of activity, business

Age of the borrower, profession, level of education and qualifications, the prospect of increasing wages and promotion

Large assets of the borrower (property, securities, etc.)

Proven ability to save money

Absence of debt on previously taken loans

Lack of stability in employment (frequent job changes without increasing income)

The ratio of the amount of liabilities to the income of the borrower exceeds the criteria established by the bank

unfavorable credit history borrower

Risks associated with the characteristics of collateral and the ratio of its appraised value to the loan amount

The specifics of the professional risk of the borrower

Risk of disability

Age of borrower

Only when all conditions are met, a decision to grant a mortgage loan can be made.

When deciding whether to grant a mortgage loan, the so-called compensatory 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 a compensating factor, or combination of compensating factors, is strong enough to offset certain aspects of a mortgage application.

The underwriting expert must document his recommendations to the credit committee on the approval or denial of a mortgage. home loan.

At positive decision the maximum allowable loan amount is calculated.

Loan amount =

n - number of payment periods (months with monthly repayment);

i- Interest rate for the relevant period (per month);

P - the maximum allowable amount of the monthly annuity payment on the loan, including payments on the principal and interest.

Fourth stage

The credit committee examines the potential client's credit case, the lawyer's opinion on the acceptability of the collateral, the conclusion of a specialist in evaluating the probability of repayment of the loan, makes a decision: issue a loan, issue it on condition, 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 the pledge agreement. A mortgage must be registered within one month from the date of receipt of the documents necessary for its registration by the body responsible for 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 entry on the mortgage in the Unified State Register of Rights to Real Estate. The day of making this registration entry is considered the date of the state registration of the mortgage.

Conclusion of an insurance contract. A set of documents regulating the relationship of the parties in the process of insurance in the process of mortgage lending should include:

The contract of insurance (policy) of life and disability of the borrower ( personal insurance borrower).

Insurance contract (policy) for the risk of loss and damage to the apartment - the subject of collateral ( property insurance).

· Contract of insurance (policy) of the property rights of the owner of the apartment - the subject of pledge (property insurance).

Sixth stage.

Stage of servicing a mortgage loan. During credit period the lender monitors the timeliness of the borrower's fulfillment of its obligations, and also has the right to control the state of real estate serving as collateral for the loan.

Servicing a mortgage loan by a bank includes:

l Collection of monthly loan and insurance payments (debits, payroll deductions, cash payments);

l Drawing up a schedule of monthly payments for the borrower (for the entire term of the loan, annually, when conditions change);

l Keeping records of issued loans (balance of principal, repayment of principal and interest);

l Registration of long-term payments to repay the loan (full or partial early payment, schedule recalculation, fine);

l Creation of a reserve for loans (1-2 risk groups);

l work with problem loans (negotiations, voluntary sale of property and repayment of the loan, collection of the balance of debt outstanding on time).

Thus, operations in the field of mortgage credit require high qualifications and special knowledge from the bank's staff. Therefore, for successful activities in the field of residential mortgage lending, banks create appropriate structural units, continuous professional development of bank employees is carried out.

seventh stage

Closing a loan deal is the final stage of mortgage lending. After full repayment of the loan debt, payment of accrued interest and penalties, the borrower's loan account is reset to zero, and thus the loan transaction is closed, therefore, the mortgage is terminated, which is recorded in the State Register of Russia. If the borrower and the mortgagor do not comply with the terms of the loan agreement or the mortgage agreement, the creditor will foreclose on the mortgaged property in a judicial or extrajudicial manner. The subject of the mortgage is being sold. The funds received from the sale are used to repay the debt to the creditor (principal, interest, fines, penalties), to cover the costs of the foreclosure procedure and the sale of the subject of mortgage. The remaining funds are received by the borrower.

Conclusion

Macroeconomic conditions prevailing in Russia as a result of financial crisis 1998, further reinforce the importance of developing long-term mortgage lending to the population not as separate initiatives of commercial banks or regions, but as an integral system with the direct influence of the state.

On the basis of this Concept, regional programs housing loans.

Mortgage credit lending- one of the most proven and reliable ways in world practice to attract private investment in the housing sector. It is mortgages that make it possible to most advantageously combine the interests of the population in improving living conditions, commercial banks and other creditors - in efficient and profitable work, the construction industry - in the rhythmic loading of production and, of course, the state, which is interested in overall economic growth.

Literature

1) Grudtsina L.Yu., Kozlova M.N. Mortgage. Credit. Comments on housing legislation. - M.: Eksmo Publishing House, 2006. - 368s.

2) Dovdienko. I.V. Mortgage. Control. Organization. Evaluation: - M.: UNITI - DANA, 2005.-464s.

3) Razumova I.A. Mortgage lending: Textbook. - St. Petersburg: Peter, 2005 - 280s.

4) Filippova E.S. Housing Law: A Textbook for High Schools. - "Yusticinform", 2007 - 179s.

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Its essence lies in the separation of the functions of primary lending and the formation of long-term sources of its financing through the issuance of mortgage bonds. In addition, second-tier mortgage institutions tend to take on the major mortgage risks.

The two-tier model of housing mortgage lending has received the greatest development in the USA, Australia, and Great Britain. Under this scheme, the lender bears all the main risks of mortgage lending - credit risk, early repayment risk and interest rate risk - and was not able to effectively manage them due to organizational and legal restrictions(including legally permitted early repayment of a mortgage loan).

The first major step in the formation of a two-tier system of mortgage lending in the United States was the creation on June 27, 1934 of the Federal Housing Administration (FHA). The main functions of the FFA are the development of mortgage lending and the creation of a system for refinancing mortgage loans. The National Housing Act of 1934 required the FHA to provide government guarantees for the repayment of principal and interest on mortgages issued in accordance with the standards of the FFA. The main type of mortgage loan, practiced for more than 70 years by the FFA, has become a loan with a fixed interest rate and equal payments. It had certain advantages over a traditional mortgage loan. Firstly, it is issued for a longer period (from 15 to 30 years); secondly, an annuity (self-absorbing) loan provides a reduction credit risk, occurs regularly throughout the entire lending period; thirdly, the borrower retained the possibility of early repayment of the loan.

The second step in the formation of a two-tier system of mortgage lending in the United States was the creation in 1938 in accordance with the directive of the President of the United States of the Federal National Association for Mortgage Lending (Fanny May). Its main task was to purchase UAF-guaranteed mortgages from approved lenders in the United States. Thus, a public-private system of mortgage lending was created, based on the power of the American state and the financial and credit system, and leaving only the functions of issuing and servicing (repaying debt and interest) these loans to primary creditors. This two-tier system of mortgage lending has survived to this day with minor changes.

in Russia since the early 1990s. dropped sharply public funding housing construction and commissioning of housing. Even in 2005, the commissioning of housing was only 60% by 1987. The state turned out to be unprepared for the development of mortgages. By the end of 1992, more than a dozen, and by 1994, about two and a half dozen mortgage banks had been created in the country. However, in the fundamental state document of the Russian Federation "On the Fundamentals of Housing Mortgage", adopted in December 1992, the word "mortgage" was not even mentioned. But literally six months later, the Government of the Russian Federation adopts a resolution “On the State target program“Housing”, in which it was recognized that one of the important tasks in solving the housing problem is to create various forms financial and credit mechanism, such as the institution of real estate pledge, and, on its basis, a mortgage loan, the secondary mortgage market, expanding the list of property pledged. On August 12, 1993, an association of mortgage banks was established. All this indicates that during the first decade of reforms, the process of establishing mortgage lending was spontaneous, sluggish and exotic.

The main participants in the mortgage lending market are:

a) borrowers who have applied for a mortgage loan, qualified by the lender as reliable and solvent, and on the basis of this, individuals and legal entities who have received a mortgage loan;
b) creditors - banks and other financial credit institutions that issue mortgage loans to borrowers on the basis of an assessment of their creditworthiness and service the issued mortgage loans;
c) home sellers - individuals and legal entities who sell their own housing or housing owned by other individuals and legal entities, on their behalf;
d) real estate organizations - licensed sellers of housing;
e) authorized body government controlled- establishment of justice for state registration of rights to real estate and transactions with it (state registration chamber);
f) appraisal agencies that carry out an independent professional appraisal of residential premises that are the subject of mortgage collateral (when issuing a mortgage loan when selling mortgaged property, during auctions, etc.);
g) insurance companies that provide property insurance (insurance of mortgaged housing), life and disability insurance of the borrower and civil liability of mortgage market participants;
h) operators of the secondary mortgage market - legal entities that redeem mortgage loans from primary creditors in the manner prescribed by current legislation, - AHML and its representative offices in the regions, Moscow Mortgage Agency;
i) investors - legal entities and individuals who purchase securities of AHML, MIA, for example, institutional investors - pension funds, insurance companies, etc.

Lending standards were developed by the agency based on the analysis and generalization of Russian and foreign experience in mortgage lending and include mechanisms for issuing and refinancing mortgage loans, standard agreements, as well as requirements for all market participants.

Credit (loan) conditions according to these standards:

1. Credit (loan) is provided and repaid in rubles.
2. Credit is provided for a period of 1 to 20 years.
3. The credit (loan) is repaid in equal monthly installments.
4. Interest on credit (loan) is currently 15% per annum in rubles. Early repayment of the loan is allowed after 6 months from the date of issue of the loan.
5. Borrower can be any legally capable individual from 18 to 60 years old.
6. Requirements for the object - a loan is provided for the purchase of a separate apartment in apartment building or a detached residential building.
7. Loan security - a pledge of an apartment purchased with credit (borrowed) funds. The amount of the loan provided must not exceed 70% of the minimum valuation of the property to be purchased and selling price apartments.
8. Income requirements of the borrower - in order to obtain a mortgage loan, you must have a regular source of income. Only documented income of borrowers is considered.
9. Maximum amount loan. The loan amount depends on the family's income and is calculated based on the condition that monthly repayment and interest payments, as well as insurance and other payments under the transaction, do not exceed 35% of the total income of the borrower's family. If the borrower contributes more than 50% of his own funds towards the cost of the apartment, monthly loan payments can reach 40% of the borrowers' total income.
10. Insurance. The borrower, at his own expense, must insure:
- their lives and disability;
- acquired property.
11. Housing purchased with borrowed funds is registered in the ownership of the borrower (one or more borrowers). Thus, the borrower immediately becomes the owner of the housing purchased on credit.

The real market for mortgage lending took shape in 2006-2007, when the priority national project“Affordable and comfortable housing for the citizens of Russia”, put forward by the President of the Russian Federation in September 2005. If before 2004 40 thousand mortgage loans were issued, then the task was set to bring their number in 2010 to 1 million. In 2006 The number of mortgage transactions in the country increased by 2.5 times compared to 2005 and reached 206.1 thousand by total amount 260 billion rubles For two years (2006-2007) the volume of mortgage lending in the country increased 11 times - from 36 to 400 billion rubles.

To achieve the goals of providing the population with housing, it is necessary:

a significant increase in income and solvency of the bulk of the population;
elimination of the monopoly of manufacturers of building materials, construction and real estate companies and lower housing prices;
elimination of corruption of state officials regulating the issuance of permits for the allotment of land plots, the revival of the design business and the training of architects;
revision monetary policy governments to stimulate housing construction, including lending for housing construction and lowering mortgage lending rates;
reduction of transaction costs associated with appraisal, notarial and state registration of housing, insurance, etc., which range from 8 to 10% of the cost of housing;
Government program development of housing construction, aimed at developing competition, ensuring a balance between supply and demand in the housing market, increasing the affordability of housing for the population and turning construction into one of the locomotives for the development of the national economy.

In world practice, two main schemes for housing financing have developed: there are two main approaches to organizing a mortgage lending system. These two basic schemes differ in the following features: (Appendix 3).

- by the degree of participation of credit institutions in the process of lending and investment;
- on the participation or non-participation of the borrower in the formation of organizational - legal form credit institution and its financial assets.

World experience in the formation of mortgage lending markets shows that they represent the most complex economic and legal formation. Their activity depends on many economic, psychological and legal factors. The appeal of credit institutions to mortgages is a reflection of their desire to use in their activities, proven and effective financial instruments, which differ from each other, first of all, in the way of refinancing loans issued: .

- American mortgage model - the so-called two-tier mortgage lending scheme, in which mortgage loans issued by banks are assigned to specially created mortgage agencies. Those, in turn, package individual loans, issue mortgage-backed securities under the formed packages (pools), sell them on the stock market, again buy loans from banks, etc. (developed, in particular, in the USA); .
- German mortgage model - the so-called one-tier model of mortgage lending, in which the bank that issued the mortgage loan independently refinances mortgage loans by issuing mortgage-backed securities (used in Germany) .

As already mentioned, mortgage lending in global practice is understood as a system that includes loans issued against the security of real estate (mortgages), registration of pledge in the state register of real estate rights, as well as elements of refinancing of creditors who issued a mortgage loan. As a result of the mass application of the mechanism of mortgage lending in the economically developed countries mortgage market emerges.

The mortgage loan market is a market where only debentures with mortgage guarantees provided to facilitate the refinancing of secured loans.

The mortgage lending market is divided into primary and secondary.

The primary market is a market in which only lenders and borrowers are represented, excluding mortgage agencies (specialized commercial organizations, whose exclusive activity is the acquisition of mortgage loans from primary lenders (most often from specialized mortgage banks) at the expense of proceeds from the issue of their own mortgage-backed securities) and other investors who repurchase loans from banks.

The secondary market is the part of the stock market where mortgage bonds are bought and sold. Thanks to this operation, the primary lender (bank) has the opportunity to sell the loans issued to them before the full maturity date, thereby obtaining funds for issuing new loans (refinancing).

The refinancing mechanism for mortgage lending is similar in all developed countries and differs mainly in organizational approaches. For example, a lender may assign rights to a mortgage loan to another person (securities, assignment). This mechanism is effective in the presence of special institutions that specialize in buying mortgage loans, forming credit "pools" and selling them to investors in the secondary mortgage lending market.

Another option for refinancing may be the issue and placement of securities by the creditor to raise funds. At the same time, claims on mortgage loans act as security for the fulfillment of the requirement. The legal regime of such securities is regulated by special legislation, and the instruments that issue them are strictly specialized and are under strict state control.

The two-tier (“American model”) relies on the secondary mortgage market. The essence of this model is as follows. The bank issues a mortgage loan to the borrower in exchange for an obligation to transfer a fixed amount to the bank every month within a certain period. This obligation of the borrower is secured by the mortgage of the acquired housing. The bank sells the loan to one of the mortgage lending agencies, transferring the collateral obligations as well. Agencies immediately reimburse the bank for the funds paid to the borrower and in return ask them to transfer the monthly payments received from him, minus the bank's profit, to the agency. The amount of monthly payments, that is, the rate at which the agency undertakes to purchase mortgage loans, is set by the agency itself on the basis of investors' requirements for the yield of the relevant financial instruments. Mortgage agencies, having bought a certain amount of mortgage loans from commercial banks, collect them in pools and create a new security on the basis of each, the source of payments for which are the payments of borrowers. . These payments are guaranteed not by a pledge 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 to the investor who bought the security, payments to the agency from the bank, minus their margin.

The main disadvantages of this scheme are: the complexity of the construction structure; the impossibility of direct integration into other civil law conditions; the high cost of maintenance, which increases the cost of credit funds for the borrower; strong dependence on fluctuations in the loan capital market and economic situation generally; close relationship of mortgage market participants with each other in fulfillment of obligations.

The positive aspects of the two-level scheme are primarily : significant expansion of sources of financing for mortgage lending operations; redistribution of risks between regions and sectors of the economy, which is also significant for Russia.

The division into two schemes of the mortgage lending market is rather conditional, since there is a tendency for the rapid blurring of the boundaries of only the primary market. Some credit institutions operating only in the primary market are beginning to gradually introduce an element of a two-tier scheme - entering the secondary market with the sale of their loans to investors or intermediaries. At the same time, an investment institution operating on a two-tier scheme can keep the bulk of the loans. And sell the rest on the secondary market to replenish credit funds. Even such closed models as savings and loan banks are beginning to transform into semi-open institutions with the involvement of large credit loans and issuing loans not only to shareholders, but also to everyone.

One-tier ("German model") The essence of the single-tier mortgage lending system is that the bank that issued the mortgage loan independently refinances mortgage loans by issuing bond-type securities - mortgage sheets. The issue and circulation of mortgage bonds is regulated by special legislation and differs from the regulation of the issue of bonds. The activities of issuers of mortgage bonds are, as a rule, limited by law to the issuance of mortgage loans and other operations characterized by a low degree of risk. No other issuer, other than those mentioned in the law, can issue securities referred to as "mortgage sheet". The activities of mortgage banks are strictly controlled by the state and banking supervisory authorities.

The main type of credit institution of the classical continental model is mortgage bank. They are characterized by the following: more than 50% passive operations is issued in the form of long-term bonds, then attracted funds in the form of long-term and short-term loans and transitional credits, to a lesser extent, liabilities are equity.

Mortgage sheets are issued in various denominations - 10, 20, 100, 200, 500, 1000 marks (sometimes - 5000 marks), for a period of 10 - 25 years (the maximum validity of German securities is 30 years). Mortgage sheets can be bearer (mostly small denominations) and registered. Interest payments of income on securities are almost the same as interest on a mortgage loan with a small difference to cover expenses and receive bank profits. When issuing securities, mortgage banks sell them through other loans or financial institutions, mostly commercial, at a price below their face value by a few percent. Mortgage bonds are quoted on stock exchanges.

characteristic feature one-level classical (continental) model is its closeness - the sources for lending are the own funds of the bank (credit institution) and funds received by banking operations (deposits, funds on accounts, short-term and long-term loans, issue of securities).

In this technology, the lender transfers a minimum of its functions and few intermediary organizations are involved. The entire investment process is regulated by the bank itself based only on its own interests, as well as the financial and economic situation. The reliability and stability of the bank, the accumulation in the same hands of the entire lending process can significantly reduce the level of the interest rate, and the large risks of long-term operations are reduced by various restrictions provided for loan agreement.

The large risks of long-term operations are also removed by various prepayment limits, which are usually associated with the amortization period. interest payments. Most technologies only after the payment of the entire amount of interest on the loan allows early repayment of the principal mortgage debt. Thus, the credit institution is insured against shortfall in profit from direct losses on operations with this client. Usually this period is specified in the contract based on the instrument used.

To increase the terms of lending, the following investment innovation is applied: financial resources mortgage and savings banks (or other lending institutions) are grouped under various technological schemes. According to one of them, the borrower takes at the same time, as it were, two loans, which he repays sequentially - the savings bank loan is repaid during the first 12-14 years, and only then the mortgage bank loan ( financial scheme so-called linked loans).

A similar investment group, in addition to savings and mortgage banks, also includes other financial institutions. Thus, several credit and financial institutions, in particular, savings banks, construction savings banks, mortgage banks, insurance companies and others, are merging into investment group. Such a group develops a single technology for working with a client, which receives a kind of syndicated loan (or combined in various options loan package) and all related services. In reality, as a result of such associations, lenders can lend to:

- in a more flexible form and with better quality;
- there is a significant decrease in the interest rate, an increase in mortgage loans and an increase in the loan term;
- the purely organizational process and the implementation of all related mortgage lending operations, such as insurance, evaluation, registration, are facilitated. At the same time, thanks to the use of special common technologies, in particular double control, general (or combined) insurance, the reliability of such lending increases.

The main condition for the development of single-tier mortgage operations is the reliability of mortgage banks as guarantors of mortgage-backed securities issued by them, which is achieved by limiting the range of operations of banks that have the right to issue mortgage bonds, a strict ratio of the size of the issue to the volume of security, and measures to assess real estate in the long term. The single-level European model of mortgage market organization has historically proven its resistance to a variety of changes in economic conditions. At the same time, the one-tier model assumes a sufficient amount of own banking financial resources and the stable operation of the entire banking system, the stability of the process of accumulation and savings by the population, which has historically always been characteristic of Western European countries.

A variant of the single-tier scheme is the savings and loan model, especially developed in Germany. In this model, the borrower is also the founder of the Savings and Loan Institute. Resource funds for mortgage lending are formed from the contributions of participants, and in case of their lack, credit institutions connect classical technologies for the formation of credit funds. At the same time, the participation of the borrower in the formation of credit resources serves as an additional guarantee for the loan. Lending under this model is much less dependent on the capital market and current market rates, since resources are largely formed within the savings and loan institution. Interest rates on loans and deposits are usually lower, fixed and valid for a long period of time, payments are also fixed and uniform.

In the contract savings system, specialized targeted deposits serve as a source of cheap funds for mortgage loans. By concluding an appropriate contract with a specialized mortgage credit organization (Savings Bank), the client undertakes to deposit a fixed amount on a target deposit at an interest rate that is significantly lower than the market average for a certain period of time. After the end of the accumulation period, having accumulated approximately half of the funds necessary for the purchase of an apartment, the client receives a loan for the second half of the funds, also under more low rate.

The funds provided by the client are used to issue loans to his predecessors who have already completed the accumulation period. The client himself, in turn, receives a loan from funds invested by clients who came later and are at that time at the accumulation stage.

Obviously, this whole procedure takes place within the framework of very strictly regulated, controlled and often state-guaranteed specialized credit organizations (savings banks). These organizations are not authorized to carry out any active operations other than providing loans to former investors. The riskiness of such loans is much lower than conventional mortgages, because they are issued to people who not only formally confirmed their creditworthiness, but also demonstrated in practice that they are capable of long term make monthly fixed payments, approximately equal to the monthly payments on the loan.

Thus, the main advantages of the single-level model are:

- practically autonomous closed existence of the system, characterized by a sufficient degree of stability in the long term;
- simplicity of the financial and legal mechanism;
- easy adaptation to any credit and financial systems.
- easy integration into national legislation;
- low cost of organization and control;
- no need to insure credit and financial risks and resort to the services of rating agencies;
- the absence of costs for the payment of remuneration to banks servicing the loan, and, consequently, the relative cheapness of the cost of the loan for a combination of factors.

At the same time, there are a number of negative factors:

- short terms lending;
- obligatory long period of accumulation of a significant amount of own capital;
- low interest by accumulation;
- the order of borrowers in obtaining a loan;
- difficulty for a credit institution to maintain low interest rates in a rapidly changing economy.

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