Found a means to an affordable mortgage

The other day the chairman of the Duma Committee on Financial Markets Vladislav Reznik, the Duma introduced amendments to the law "About Fund of assistance to reforming housing and communal services", allowing to invest temporarily idle funds in the fund deposits of Russian credit organizations. According to the experts think tank www.irn, a positive assessment of the deputies of these amendments will significantly improve the conditions of the mortgage. At the same time the need to loosen up in the mortgage now began to speak, even major banks. However, no long cheap means they can not do it. Such a role could just play money housing aid. In accordance with the laws of the Fund temporarily available, utilities may be placed in government securities both domestic and foreign, according to the established government of the Russian Federation to the list. In addition, permitted to place the fund in deposits, but only the Bank of Russia. Housing Fund began active operations in December 2007 and has until 1 January 2012 to transfer regions 240 billion rubles for capital repairs of apartment houses and resettlement of residents from emergency housing. Each member of the Russian Federation may apply for funds from the Fund under the limits, which, depending on the area of ​​the housing stock will be allocated to the regions from 500 million to $ 8 billion rubles. Act allowed for the first year of use up to 30% of the fund. Today, the region serves less than 1% from the provisions of the 2008 amount. As a result, the supervisory board of state-owned corporation took the decision to place temporarily free funds deposited securities. Last November, the Minister of Regional Development Dmitry Kozak said that the fund will primarily invest in foreign and Russian government securities. But, apparently, against the background of the general instability in the stock market this decision was changed. But "the placement of these funds only in deposits with the Bank of Russia leads to sterilization and exclusion of the money supply to regulate the liquidity of the national banking system, which is a negative factor in the current situation of global financial crisis," Vladislav Reznik quotes "Interfax". In addition, the fund itself and does not receive income, being forced to allocate funds under the lowest possible rate, the author stresses the bill. Indeed, the rate of the Bank of Russia deposit does not exceed 4.8% and inflation this year is expected to reach 9.5%. Thus, the loss corporation could reach 9.2 billion rubles. In this regard, Vladislav Reznik seems appropriate to be amended to invest temporarily idle funds in the fund deposits in Russian banks if these banks meet certain requirements. According to the text of the bill housing aid funds may be invested in deposits in Russian banks in case they meet two requirements. The main one - is the size of equity, it must be at least 50 billion rubles. At the moment, this condition correspond to 4 banks. Among them there is not a private 3 public - Sberbank, Gazprombank, VTB, and a regional - Bank of Moscow. As an additional condition appears to require the absence of the credit institution's outstanding debt on bank deposits, previously placed in it at the expense of the federal budget or the fund. How these correspond to the last request of the banks is hard to say. Other things being equal, if housing aid money will be placed on deposit at the banks, they may be savings from inflation. The maximum rates for deposits in these banks range from 9.5% to 10%. These contributions are intended for long-term and large investments. Given the fact that the fund will be spent slowly over 4 years, even dividing the money into 4 parts, each of the banks it will be a substantial sum. And these funds are needed now to banks. The fact is that due to the global financial crisis, the cost of borrowing for banks has increased and they were compelled to worsen the terms of the mortgage. However, the new conditions of consumers are taking fewer credits. And in order to improve banks need cheap money long. As a result, VTB to solve this problem even sent to the Central Bank a number of proposals that would "free up funds to develop the mortgage system." One of them was a proposal to bring regulatory requirements of the Bank of Russia in line with international standards "Basel 2". "Basel 2" provides for the capital adequacy ratio (the ratio of capital to assets) for banks at 8%. Central Bank has established this standard for the level of 10%. However, as the practice of previous years, the Bank of Russia does not go to such indulgences. In this case, the Fund is just the same housing can play a salutary role. And it will be a positive solution of the mortgage problem. Mortgages should become a major tool to improve housing affordability, but so far its services not to exceed 5% of the population. While the need to improve the living conditions experienced around 60% of Russian citizens. Do not allow them to fulfill their dream that there is insufficient money to buy housing and mortgages they can not take because of the harsh environment. Given that 4 of the bank is covered by its network all over Russia, "Indicators of housing market" believe that the placement of housing aid in their accounts can significantly improve the availability of mortgages. Banks can reduce lending rates and minimum down payment that will enable more potential borrowers to buy homes.