Bank mortgage venture

CB changed my mind radically toughen approach to risk assessment for mortgage loans. In addition to reserve capital banks will have only a very large mortgage loans. Thus, the regulator is not only insure banks against the risks of a sharp depreciation of luxury homes, maintaining a mortgage as a business interest to banks, but will have a tool to combat schematic mortgages, experts say. About the upcoming mitigation approach to risk assessment for mortgage loans, compared with the original hard plans "b" the director of the department of banking regulation and supervision of the Bank of Russia Alexei Simanovsky. According to him, in a new working version of the amendments to the 110-user (the mandatory regulations of banks) it is about to establish an increased risk ratio 150%, not all mortgage loans with low, according to the regulator, ensure quality, but only for those whose size is significantly higher than average (for example, more than 50 million rubles).. Thus, compared to the original proposal had been discussed today will be more balanced approach, said Alexei Simanovsky. According to him, the maximum risk factor of 150% will be applied only in the presence of two factors: the lack of quality and security (the ratio of loan / mortgage is greater than 80% initial payment is below 20%), and large loans. If there is only one risk factor will be applied 100%, in the absence of both factors - the reduction factor of 70%. If this working version of the amendments become final, the new edition 110-instruction in assessing the risk of mortgage loans will differ from the current is not as radical as originally expected. In the first version of the amendments published in late November on the website of the Central Bank to discuss with the banking community, the size of the loan was not taken into account, and the coefficient of 150% is proposed to apply in the presence of the factor of insufficient collateral for the loan. According to the current edition of the instructions, mortgages with low quality software requires the Bank to assess the risk by a factor of 100%, in the absence of this factor - 70%. Coefficient of 150% for mortgages is currently not used. The size of the risk coefficients for various assets of the bank affects its capital adequacy ratio (N1), which is determined by the activity and bank lending. Decrease below the minimum level H1 (10% for large banks in terms of capital, 11% - medium and small) is associated with serious sanctions the regulator. Central Bank changes its approach to risk assessment on the mortgage in the total exercise greater control over the risks of banks based on the lessons of the crisis ("b" wrote about this 24 November). Mortgages - one of the few points on which the Bank has agreed to soften the initial tough stance. If this had not happened, mortgages would be extremely burdensome for the banks in business, and mortgage - less accessible to the citizens, indicate market participants. "Of course, now many banks do not issue mortgages with an initial payment of 20% and the ratio of loan / mortgage for more than 80% before the crisis, but it was spread, and the fact that a new approach to risk assessment is supposed eventually be extended to loans previously issued , the original version of the amendments was too strict, "- said the director of finance department, board member of VTB 24 Alexander Melenkin. "If the Central Bank has not limited the application of the risk weights only 150% larger loans with inadequate provision, it could significantly knock mortgages - Member of the Board agrees to" Revival "Andrei Shalimov .- Banks are unlikely to take the risk of such operations" . "We did not impair the purpose of mortgage lending terms," ​​- said "b" Alex Simanovsky. The previous version of the amendments in respect of the mortgage, he called the "technological overlay." The new interpretation of the proposal of the Central Bank the majority of respondents "b" of bankers considered reasonable. "Banks are not many large mortgage loans on the balance sheets, tightening of such loans critical to someone unlikely to be - shows Alexander Melenkin .- In this approach the Central Bank, in principle, is clear: the risk of a major mortgage objectively higher. Luxury Real Estate, for the purchase of such loans which are taken in case of crisis in the price of losing much more than ordinary housing. " Under the guise of combating mortgage securities risk trying to close the banks to mask the more risky types of loans at less risky, mortgages, bankers point out. "Most likely, this is an attempt to combat the schemes, when under the mortgage loan business disguised (mortgage) or for the purchase of property for speculative purposes, the risks which are completely different," - said Andrey Shalimov. It is one thing, he argues, if a person with a salary of $ 15 thousand to buy an apartment for $ 500 thousand and regularly pays $ 5 thousand per month, and another - if the apartment is over $ 3 million to put into the bank for a loan of $ 2 million, and the proceeds are invested in a business that suddenly goes bust. Assess the extent of proliferation of such schemes, market participants found it difficult.