Bankers are dissatisfied with the decision to cancel the life insurance YOU for your mortgage

Banking community has expressed dissatisfaction with the decision of the Supreme Arbitration Court, which in turn invalidated the mandatory life insurance for a mortgage loan. We recall that on 25 January this year, a panel of three judges of the Supreme Arbitration Court refused to hand over to the Presidium to review the case Amur Mortgage Agency, a division of the Agency for Housing Mortgage Lending (AHML), loser of three courts Rospotrebnadzor the Amur region. Thus, the EAC decided in favor of consumer protection. Determination of EAC in the case of Board is final and can not appeal it. Interviewed representatives of the banks active in mortgage lending, strongly opposed this decision. According to the Managing Director of the block "Retail Business" Bank of Moscow Alla Tsytovich, life insurance in the world is now a universal standard. "Together with our clients suffer from this decision, and the banks, as in this case, the bank has additional risks, increases risky component, respectively, will rise and mortgage rates," - said A. Tsytovich. According to a board member of City Mortgage Bank Michael Busygina, the legislation has created yet another obstacle to the development of the residential mortgage market, while the state sets the task of issuing 1 million of mortgage loans in 2010. "This will be possible only if the formation and functioning of an effective market for mortgage securities, which we still in the embryonic stage. A law on mortgage securities directly requires a life insurance and disability co-borrowers as a mandatory requirement for mortgage coverage, "- he said. M. Bulgakov sure the solution you just would not be good either borrowers or banks or the State as a whole. According to him, you must understand that the insurance company a more professional working with these risks, so if in the new banks will have to take these risks for themselves, the rates rise, and in an amount exceeding the current value of this type of insurance. In addition, he noted that the denial of life insurance in the event of death or injury to the borrower, his family, the failure to pay on the loan is quite capable of losing their homes. In summary, he noted that from this "innovation" will lose all: consumers (mortgage availability could decline, and the rate of increase), banks (will give less credit and risk with the rise), the insurance market (decrease premiums and investment opportunities these companies), state (growth in mortgage and construction may be delayed). A similar opinion and the Director of retail banking products Absolut Bank Emil Yusupov. He also noted that the life and health insurance of borrowers is a necessary measure in order to reduce the risk of default of bank funds.