The life of the mortgage come unsweetened times. Recall that in January there were two notable and not very pleasant event. First, the central bank acknowledged that the liquidity situation does not matter: because of the crisis in global financial markets, our banks, occupying low-cost funds in the west, or have lost this opportunity, or they will accrue money on more stringent conditions. Secondly - The Supreme Arbitration Court ruled that banks can no longer require the borrower to insure his life. Bankers said they then have to raise rates. Internet Journal of Real Estate has decided to ask Metrinfo mortgage market professionals about how to affect the mortgage rates of a liquidity crisis and a decision on the illegality of EAC requirements to insure the life of the borrower. We asked the experts the following questions: 1. Due to what the banks will join "their coffers" - will draw funds from the public, will develop a secondary market for mortgage-backed securities? 2. Will the domestic ruble mortgage because of credit difficulties in the West? 3. Will increase if mortgage rates for these reasons - financial crisis and the solutions YOU? 4. Will the tightened requirements on borrowers? Banks will be released to the world standards Ilya Zebari, the head of the block, "Mortgage loans" Alfa-Bank: 1. Banks strengthen efforts to attract private deposits, raise interest on deposits. In addition, renewed efforts to sell mortgage portfolios. 2. On dollar loans is likely rate hike, it is connected with the "fall" of the dollar, and the mortgage crisis in the U.S., which led to a rise in foreign debt. If the situation rates for ruble and dollar loans can match. Today, Muscovites prefer to borrow in dollars, the inhabitants of the regions - in rubles. The portfolio of Alfa-Bank, 45 per cent - a mortgage in dollars and 55 percent - in rubles. Overall, 30 percent of the market - mortgage loans in foreign currency, while 70 per cent - in rubles. Due to the increasing number of regions where Alpha Mortgage (now 30 and the end of the year plans to open new branches), we expect growth in the share of ruble loans was in Alfa-Bank. According to our estimates, in Russia next year to 80 percent of all mortgages will be issued in rubles. Many banks have already raised their mortgage rates. During the year, can further increase rates if the market for funding will not improve. 3. Now a comprehensive insurance costs to the borrower in 1-2 percent of the cost of the mortgage - the price of the insurer due to the long-term risk analysis. The price of the bank for cancellation insurance will be higher because it has no relevant statistics and takes into account the factor of delay in the sale of collateral. 4. Recently, banks begin to adhere to international standards in issuing loans. Previously has been simplified test of solvency. most of the borrowers simply "believe in the word." Banks refused to guarantee the system, gave loans with no down payment, to customers with poor credit history or no mortgage loans offered "for any purpose." In the new programs such banks will collapse. Because of the preferential borrowers do not have to suffer the depositors Vladimir Ponomarev, Vice President, RSA, chairman of the National Association of Mortgage Market: 1. The main source of income of the bank are the means of citizens, as well as raising funds from the markets of external borrowing - both from Russia and from abroad. In these circumstances, the liquidity an important role to play and will be the central bank. Hoped that the development of secondary mortgage securities market contributes to the replenishment of liquidity, it is not necessary. We now have a problem with transactions in securitisations. 2. Domestic mortgage today basically the ruble. Depending on the region where the population savings in dollars, you can borrow in dollars. But due to high investment rating of Russia, the credits can be granted in rubles and was nominated for the ruble in the issuance and distribution of mortgage-backed securities abroad, as the yield on the ruble is now the most high. Himself a poll about what kind of mortgage will be the ruble or the dollar - not principled. This is absolutely not a crisis phenomenon. 3. Mortgage rates are rising. According to various estimates - from one to two percent. This is due to the financial crisis raised price of money from abroad increased. Also, several interest rates rise. Everything will depend on how long it will last for this crisis. The decision of the Supreme Arbitration Court of the illegality of the requirements of life insurance and health of the borrower - is, in my view, a negative factor. Imagine that the borrower is the sole breadwinner in the family. He's dying. If his life is insured, the family will receive a certain amount of money and be able to repay the loan. If life is not immune - the family appear daunting challenges. Without life insurance will increase the risks and, consequently, interest rates and domestic credit. When they say that these conditions are not in the U.S., they forget that every or nearly every U.S. citizen is insured, and there is no need to prescribe it to special rules for mortgage lending. We have developed insurance mechanisms are extremely weak. Therefore, banks may require that such rules that will protect their interests and ultimately - the borrowers. Bank of lives at the expense of depositors, if you give preference mortgage borrowers, the investors will be harmed. 4. We must draw lessons from this crisis, therefore, should be tightened conditions for granting mortgage loans, that is, check the solvency of potential borrowers. Severities have enough Dmitry Bulkowski, CEO of the Independent Mortgage Bureau: 1.Odnim of the crisis will be a return to traditional sources of funding for banks - attracting deposits. On securitization, at least in the short term, hope is not necessary. 2. Over the past six months we have seen in our company is strong demand ruble credits, this is due to the distrust of people in the dollar. One can predict that the ruble in the near future mortgages will grow. Banks will continue to attract dollars, but in these circumstances is likely rates will be slightly raised. Do not forget about the exotic currencies - francs and yen. Very attractive offers from 6 per cent per annum will increase the share of loans nerublevyh on the market. 3. Rates are already high - loans at 18 percent per annum agree to take one in a million, so further increase no longer available. 4. Requirements for borrowers and has tightened enough. Repay the loan will have relatives Kopystyrinskaya Tatiana, Head of mortgage investment and development company «City-XXI Century": 3. Cancellation of compulsory life and health insurance the borrower has its pluses and minuses: Pluses: decreases the amount of initial investment in the borrower's loan. Most often, if two co-borrowers, the need to insure and also two persons. Tariff insurance companies today is approximately 0.7 percent of the loan amount increased by 10 percent. If the loan amount is $ 100,000 U.S., the insurance rate will be 840 U.S. dollars. This annual renewable amount. Cons: in the event of disability, death, etc., to extinguish the loan will either bail or be sold the mortgaged property. Exception - a pledge of securities or collateral; possible change in interest rates and terms. May tighten the requirements for borrowers who have reached a certain age. But, as always, the banks together with the insurance companies will find a way out. And the profits that arose from insurance companies for insurance of bank customers, partners, will be obtained any other way. Banks will be able to cover their risks by, for example, higher interest rates or the introduction of any additional payment. Value of the cash resources of deposits and loans increases Valery Kalinin, Advisor to the Chairman Board of JSCB "FORA-BANK" (ZAO): 1-2. With regard to the liquidity crisis in the mortgage market, banks will be looking for different ways to raise funds to provide loans. Note that for the purposes of refinancing no matter what currency lend - in U.S. dollars, euros or Russian rubles. More importantly - the cost of leverage resources. And it increases, respectively, and rising interest rates on mortgage loans. But banks have formed portfolios of mortgage loans, will try to refinance them at foreign investors, because in our country pool of investors willing to buy pools of loans, rather limited. It is obvious today, foreign investors will change the terms and conditions for reinvestment, and to provide loans. And the cost of borrowing is growing and we have. This is evident in the repo rate at which the interbank loan market (MBC) to obtain loans at short notice. Until recently, the rate was less than 4%. Today it has grown to 6.25%. This suggests that the value of the cash resources grows in all financial markets, and this is one of the reasons for the growth of the CBR refinancing rate by a quarter percent. 3. While the effect on the decision of the Supreme Arbitration Court ultimately unclear, and, apparently, the banks - mortgage lenders will act on their own. It seems that they will seek to compensate for the lack of this type of insurance. This judicial decision can not but cause regret, because it will brake to increase the availability of mortgage lending. Anyway, the interference in the legitimate activities of mortgage lenders and creditors who have every right to set their own credit conditions and requirements for borrowers, clearly discordant with the overall situation in the mortgage market. Without insurance the borrower's life is deteriorating credit quality, which means the bank that has a pool of mortgage loans will be harder to refinance, that is to find an investor who agrees to buy back such loans. Of course, this complicates the activities of mortgage banks, especially amid the global financial crisis. Therefore, it seems that mortgage lenders, and lenders would be worth to combine their efforts and ensure that credit life insurance has been retained for legitimate reasons. 4. What are the consequences of waiting for borrowers? Apparently, some banks will reduce the sentence, others refuse to mortgage programs with no down payment, others - will increase the requirements for the minimum down payment. May also occur some increase in interest rates on loans, reviewing underwriting requirements for borrowers (assessing their creditworthiness.) Rates are grown Veyps Artis, director of the Mortgage Agency "Hippolytus": 1. Sources of funds to banks - deposits, loans against securities, and other loans. Having raised the refinancing rate, the Central Bank aims to combat inflation. Consequence of this action - raising interest rates on lending and deposit rates. Some parts of the population will become an impossible burden fees on loans and the amount of money that households were willing to submit to the board of the loan will be used to build, that is - again in the bank. However, given the government's plans to improve the living conditions of citizens and promises to issue in 2010 1 million loans per year, means the accumulation of the population is not enough, so the development of secondary market for mortgage-backed securities appears to be inevitable. 2. Currency loans, mainly chosen based on the cost of borrowing, and rarely, relying on the currency in which revenue. Getting credit is not in the currency in which the borrower receives the proceeds, a person voluntarily assumes the risk. People do not realize that the sudden strengthening of the dollar could lead to default on their part, ie the possibility of losing property, for which they paid a large sum of money and spent a few years of his life. Over time, domestic banks will be more strictly look at it. This does not mean that the currency is completely forced out of the Russian market, but the number of mortgage loans in domestic currency, will inevitably grow. At least, because that means of payment in Russia is the ruble. 3. Rates have increased by 1.5-2 percentage points compared with the proposals of the banks some six months ago. In the coming year, it is unlikely that rates will decline, while the average cost of borrowing for mortgage loans on the secondary real estate market will be 11-13% per annum for ruble credits. Rates have already played, the decision will affect you more on insurance market. Perhaps we will see changes in the structure of contracts to be concluded, that title and property separately, life and health separately. 4. The mortgage crisis in the stable from the economic point of view, America will become a serious lesson to domestic creditors. To reduce the risk of defaults, announced on mortgage loans, will require further tightening of requirements for borrowers. Summary of the Internet magazine of real estate experts we are not comforted, but rezanuli the whole truth. But the truth is necessary to look into his eyes. So, try to summarize the information: - The money the banks will look at us (depositors and customers) and all on the same West that is sure to raise rates. "Nashenskogo" mortgage-backed securities market have not yet, but it in to what may be done. - According to some respondents rubles or dollars, will be - it does not matter. Nevertheless, there is a trend reversal in the direction of the market rate. Rates for ruble and dollar loans can match - YOU decision to cancel the life insurance practically all evaluated negatively, and the consequences of this decision, coupled with the crisis are obvious - the growth rates of 1-2 percent, minimize "risk" programs. - Borrowers will "shake" and a serious check. However, the "tightening" should be also in the measure, not to scare customers.
No comments:
Post a Comment