scholarly journals Reorganization of the technology and procedures for conducting mortgage transactions

2018 ◽  
Vol 80 (2) ◽  
pp. 473-477
Author(s):  
N. N. Kudryavtseva ◽  
Yu. V. Pakhomova ◽  
Yu. N. Duvanova
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Real Estate Market ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
The Real Estate ◽  
Advantages And Disadvantages ◽  
Stage Of Development ◽  
Banking Activity ◽  
The Moment

The article considers the structure of mortgage lending of PJSC "VTB24", presents the functions of the Department of mortgage lending and the Department of conclusion and support of mortgage transactions. The scheme of the mortgage transaction is analyzed and its advantages and disadvantages are given. At the moment, there is a high probability of further curtailment of Bank licenses and the flow of depositors ' funds to larger banks at lower interest rates. At the same time, the Central Bank allows for a 2 – fold drop in profits from banking activities to the level of 300 billion rubles a year. At the present stage of development of the Russian economy, the banking sector is no longer experiencing a period of rapid growth, as it was a year and a half earlier. However, credit institutions continue to slowly increase the volume of lending operations, thus trying to ensure the gradual saturation of the Russian market of banking services. The growth of assets of Russian banks is based on the increase in the volume of loans granted. Lending to the economy and the population has firmly taken the place of the main type of banking activity. The most rapidly developing segment of the credit services market is lending to the population. The mortgage market should be considered as part of the interaction between the banking market, the real estate market, the insurance market and the securities market and their derivatives. The level of development of the mortgage market depends on the level of development of these markets. They are interrelated and interdependent elements of a single mortgage system in the country. In turn, the mortgage market can also be seen as a necessary element of the above markets

New Mortgage Lenders and the Housing Market*

2020 ◽  
Author(s):  
Nikodem Szumilo
Keyword(s):  
Risk Taking ◽  
Financial Stability ◽  
House Prices ◽  
Housing Prices ◽  
Real Estate Market ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
The Real Estate ◽  
Banking Market ◽  
The Real Estate Market

Abstract This article examines the effect of a new lender’s entry into a local mortgage market on the supply of new loans, housing prices and repossessions in areas around its branches. I use the decision of the European Commission to force the UK’s largest retail bank to divest a part of its business as a shock to the entry of a new lender, and show that incumbent banks increase mortgage lending in areas where the new bank has its branches. Furthermore, house prices increase by around 5% in the real estate market impacted by the shock. Average transaction numbers and mortgage repossession rates also increase in places where the new bank enters. Overall, my results show that increased competition in the banking market can have adverse consequences for risk-taking and financial stability.

scholarly journals MORTGAGE LENDING MARKET IN THE RUSSIAN FEDERATION: CURRENT STATE, PROBLEMS AND PROSPECTS

2021 ◽  
Vol 2 (53) ◽  
pp. 72-78
Author(s):  
S.A. Starykh  ◽  
◽  
S.A. Lavoshnikova  ◽  
 A.D. Chesnokova ◽  
Keyword(s):  
Real Estate ◽  
Russian Federation ◽  
Real Estate Market ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
The Real Estate ◽  
Financial Bubble ◽  
The Real Estate Market ◽  
The Russian Federation ◽  
The Impact

Subject. The market of mortgage housing lending in the Russian Federation. Topic. The impact of the coronavirus pandemic on the mortgage lending market. Purpose. Analyze the housing mortgage lending market in the Russian Federation and identify the reasons for its explosive growth in the 3rd and 4th quarters of 2020. Methodology. Methods of comparative analysis of the housing mortgage lending market in the Russian Federation. Results. The possibility of the formation of a financial bubble in the real estate market in Russia is studied, and the probable prospects for the development of the mortgage market are evaluated Application area. The mortgage lending market, including the behavior of borrowers (buyers in the housing market) and the activities of credit institutions. Conclusions. The article analyzes the housing mortgage lending market in the Russian Federation and identifies the reasons for its explosive growth in the 3rd and 4th quarters of 2020. The article examines the impact of the coronavirus pandemic on the mortgage lending market, including the behavior of borrowers (buyers in the housing market) and the activities of credit institutions. The possibility of the formation of a financial bubble in the real estate market in Russia is studied, and the probable prospects for the development of the mortgage market are evaluated. Keywords: mortgage lending, deferred demand, financial bubble, coronavirus pandemic, mortgage lending rate, key rate, average credit rating of the borrower, overdue debt, bankruptcy, reserves for possible losses.

Analyzing the Causal Relationships Between Financial Crises and the Residential Mortgage Market

2021 ◽  
Vol 27 (8) ◽  
pp. 1773-1789
Author(s):  
Larisa I. YUZVOVICH ◽  
Mariya V. SHARAFIEVA
Keyword(s):  
Interest Rates ◽  
Financial Crises ◽  
Banking Sector ◽  
Recovery Period ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Mortgage Loan ◽  
Causal Relationships ◽  
Active Growth ◽  
Residential Mortgage

Subject. We consider the economic relations, arising in the process of the analysis of the financial and economic state of the housing (mortgage) loan market during crises. Objectives. The aim is to conduct a study within the practical concept of financial crises and the residential mortgage market, to identify cause-effect relationships. Methods. We apply analytical and expert methods, based on the analysis of residential mortgage market data and the activities of the Agency for Housing Mortgage Lending. Results. The study determines the segmented role of digitalization of the banking sector in the system of State programs intended to support the residential mortgage market. We reveal causal relationships between financial crises and the residential mortgage market on the basis of a factor analysis. Conclusions. During 2008 and 2014, the government regulation of the banking crisis was only through changing the level of the key rate. It resulted in an increase in interest rates and a decrease in demand for mortgage loans, as affordable mortgage interest rates still remain the main driver of mortgage lending for citizens. This scenario gives rise to a stagnation of the residential mortgage lending market and, consequently, a very long recovery period. In contrast to the scenario of 2020, where we see an active growth in mortgage lending against the background of the financial crisis, the reason was the implemented set of measures that triggered the growth and formed a safety cushion for the banking sector in the form of secured lending.

THE CURRENT TRENDS AND FACTORS IN THE DEVELOPMENT OF MORTGAGE HOUSING LENDING IN RUSSIA

2020 ◽  
Vol 6 (4) ◽  
pp. 320-333
Author(s):  
Natalia A. BABURINA ◽  
Alexey G. KUTSEV ◽  
Daria D. Mukhametzianova ◽  
Lilia A. Kharitonova
Keyword(s):  
Regression Analysis ◽  
Dynamic Analysis ◽  
Interest Rates ◽  
Residential Buildings ◽  
Weighted Average ◽  
Real Estate Market ◽  
Mortgage Lending ◽  
Russian Scientific ◽  
Statistical Dynamic ◽  
Lending Institutions

The presented work contributes to the development of the studies evaluating the key determinants of mortgage housing lending development in Russia. Despite a relatively well-developed body of research in the field of mortgage housing lending, devoted to revealing the essence, functional purpose, and implementation mechanism, the works, aimed at identifying the factors influencing its development in the current economic environment in Russia, are under-represented in the Russian scientific field. This study aims to assess the dynamics of mortgage housing lending in the contemporary economic conditions and to identify the determinants of its defining. The research methodology is based on the use of statistical dynamic analysis and correlation-regression analysis. The work is based on the application of methods of statistical dynamic analysis and correlation-regression analysis. Assessment of the dynamics has shown the general trend towards an increase in the volume of mortgage housing loans. However, some periods have been noted to have a negative dynamic primary related to the negative external environment and stagnation of the economy, due to the COVID-19 pandemic. Additionally, this article presents the assessment of the qualitative indicators characterizing the level of penetration and the degree of aggressiveness of lending institutions’ policies on housing mortgage lending. The authors have built a panel data model that has allowed identifying the key determinants of the development of residential mortgage lending in Russia. The results have revealed that the state of the mortgage lending sector in Russia is influenced by such factors, as the commissioning of residential buildings, the cost in the primary real estate market, weighted average interest rates, and the unemployment rate.

scholarly journals The dangerous ineffectiveness of negative interest rates: the case of Switzerland

2019 ◽  
Vol 7 (2) ◽  
pp. 220-232 ◽  
Author(s):  
Sergio Rossi
Keyword(s):  
Interest Rates ◽  
Real Estate Market ◽  
Negative Consequences ◽  
Housing Crisis ◽  
Economic Activities ◽  
The Real Estate ◽  
Negative Interest Rates ◽  
The Real Estate Market ◽  
National Bank ◽  
Better Than

This paper argues that the negative interest rate adopted by the Swiss National Bank in 2015 has elicited a series of negative consequences across the Swiss economy. It has led an increasing number of agents to invest their savings in the real-estate market, whose prices have overheated, threatening the eruption of a housing crisis. It has also induced a number of financial institutions to turn to riskier businesses in an attempt to continue to earn some returns, thereby increasing financial fragility at systemic level. The paper suggests that a small Tobin tax on all Swiss-franc purchases may contribute to the support of domestic economic activities much better than negative rates of interest.

Barriers to accessing mortgages in Nigeria’s housing markets

2018 ◽  
Vol 11 (4) ◽  
pp. 716-733
Author(s):  
Chukwuma C. Nwuba ◽  
Eunice Oluwakemi Chukwuma-Nwuba
Keyword(s):  
Interest Rates ◽  
Housing Markets ◽  
Urban Housing ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Market Reforms ◽  
Social Implication ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type

PurposeThe purpose of this study is to investigate barriers to accessing mortgages in Nigeria’s urban housing markets with the main focus on Kaduna State. The objective was to establish the diverse factors that constitute barriers to urban households’ access to mortgages for homeownership from the perceptions of households, mortgage lenders and the Federal Mortgage Bank of Nigeria.Design/methodology/approachThe study used cross-sectional survey with triangulation of results. To enable the triangulation, three new samples were developed from 450 surveys with households and 10 completed by lenders, both in Kaduna State and one survey undertaken by the Federal Mortgage Bank of Nigeria. Data were collected with questionnaires designed on five-point Likert model. Data analysis utilized descriptive statistics and one-samplet-test. Triangulation enabled cross-validation of the results.FindingsThe barriers include low incomes and savings which constrain households’ ability to pay mortgage instalments and deposits, respectively, high interest rates, poor access to land, inability of potential borrowers to provide certificates of occupancy on their land, inadequate loanable funds and inadequate number of mortgage lending institutions.Practical implicationsThe study has the potential to provide a basis for mortgage market reforms. Mortgage market reforms should be encompassing because it requires action in some other sectors.Social implicationsThe social implication of the study is the possibility of motivating actions to deal with the diverse barriers to accessing mortgages which have constituted deterrents to households from realizing their homeownership aspirations and enjoying the benefits of homeownership and consequently contributing to inadequate housing and poor living conditions.Originality/valueThe study provides distinctive insight into Nigeria’s mortgage market by integrating the views of various stakeholders on a subject of social and economic significance. It contributes to the evidence-base around mortgage market reforms in Nigeria.

scholarly journals Mortgage as an Available Source of Credit Resources for Investment Financing in 2019

2019 ◽  
Vol 12 (1) ◽  
pp. 86-97
Author(s):  
S. V. Shchurina
Keyword(s):  
Low Income ◽  
Banking Sector ◽  
Mortgage Lending ◽  
Mortgage Market ◽  
Easy Access ◽  
Russian Government ◽  
Mortgage Loans ◽  
Loan Default ◽  
Mortgage Rates ◽  
The Government

The subject of the researchis the availability of mortgage as a credit resource for investment funding. The relevance of the problem is due to the development of the mortgage credit lending in the country. The policy of the Central Bank of Russia (CBR) and the Russian Government aimed at combating inflation and planned reduction of the key rate created favorable conditions for establishing acceptable bank rates on mortgage loans, which significantly raised the mortgage demand over the past few years. The research shows that Russian commercial banks have reduced mortgage rates and are offering refunding of previously issued mortgage loans, which demonstrates the confidence of the banking sector in the government and economic stability at the macro level. At the same time, the easy access to home mortgage lending can lead to a “financial bubble” problem on the Russian banking market and, moreover, to deterioration of the borrowers’ solvency, and, therefore, loan default.The purpose of the researchwas to examine the current affordability of mortgage as a source of credit resources for investment funding and develop recommendations for improving this process. The paperconcludesthat the government policy of economic and financial stabilization through inflation combating measures and maintaining the key rate by the CBR at the level acceptable for economic growth should be continued. At the same time, the transition from the participation finance to the project-tied system of housing construction financing can possibly increase the loan interest burden on developers and affect the price per square meter for the final buyer. The main factors contributing to the reduction of mortgage rates are the planned reduction of the key rate by the CBR and low inflation rates, the program of the Government subsidies to the mortgage market as well as the increased supply of low-income housing by developers.

scholarly journals CONSTRUCTION COST AND THE GROWTH IN SUPPLY OF REAL ESTATE HOUSING IN KENYA

2016 ◽  
Vol 1 (1) ◽  
pp. 56
Author(s):  
Samuel Mungai Ngugi ◽  
Dr. Lucy Wamugo
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Low Income ◽  
Building Materials ◽  
Construction Cost ◽  
Real Estate Market ◽  
Primary Data ◽  
High Interest Rate ◽  
The Real ◽  
The Real Estate

Purpose: The main purpose of this study was to establish the effects of construction cost on the growth in supply of real estate housing in Kenya. Methodology: The study adopted a descriptive research design. The target population was 78 registered real estate companies in Kenya. The sample size was therefore 39 registered real estate companies in Kenya. Primary data was collected through the administration of the questionnairesResults: The study found that finance cost, cost of building materials, cost of land and tax cost have a statistical and negative influence on the growth of supply of real estate housing. The study also concludes that increase in growth of real estate market despite the high interest rate could owe to the price inelastic demand for housing owing to economic disparity in the country. While low income earners, who are majority, are pushed away to less glossy and crowded homes where survival supersedes luxury, the upper middle income purchase of housing units is on the upward spiral.Unique contribution to theory, practice and policy: The study recommended that the government should lower interest expenses so as to encourage the increase in supply of affordable real estate housing. The bank should also lower their interest rates so that the real estate firms can be able to increase the supply of housing. The study also recommends that investors should consider investing in the real estate market despite the erratic interest rates.

scholarly journals Impact of Government Measures to Support Mortgage Lending on Housing Affordability in Russia: Regional Evidence

2021 ◽  
Vol 80 (4) ◽  
pp. 98-123
Author(s):  
Ianina Roshchina ◽  
◽  
Natalia Ilyunkina ◽  
Keyword(s):  
Housing Prices ◽  
Real Estate Market ◽  
Mortgage Lending ◽  
Housing Affordability ◽  
Government Support ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Support Housing ◽  
Quantitative Indicators ◽  
The Impact

This study investigates housing affordability in Russia: factors of affordability, quantitative indicators, and government support measures. We are especially interested in the mortgage rate subsidy programmes that were implemented in 2015–2016 and 2020–2021 and their impact on housing affordability indicators. In order to evaluate impact of the first programme, we use a model of the real estate market and we decompose the index of housing affordability into different factors. As a result of our econometric analysis, we conclude that in general the programme was successful. Data about the second programme are not yet sufficient, so we evaluate its impact by a statistical analysis of the dynamics of the main indicators. We conclude that the impact is ambiguous: up until a particular moment (different in different regions), borrowers could benefit from the programme, but after that moment the increase in housing prices caused by the programme itself were exceeding the benefits from the subsidised rates. In conclusion, we provide some methods to improve the effectiveness of government measures to support housing affordability, which could be useful in the development of new programmes.

FEATURES OF THE MODERN MORTGAGE LENDING SYSTEM IN THE RUSSIAN FEDERATION

2021 ◽  
Vol 2 (6) ◽  
pp. 88-94
Author(s):  
S. M. MOLCHANOVA ◽  
◽  
O. S. LOSEVА ◽  
Keyword(s):  
Interest Rates ◽  
Russian Federation ◽  
Banking Sector ◽  
Financial Institution ◽  
Social Situation ◽  
Mortgage Lending ◽  
Social Orientation ◽  
Economic Relations ◽  
Market Participants ◽  
The Russian Federation

The article examines the process of mortgage lending in the Russian Federation, which, according to the authors, contributes to increased competition between market participants, which allows to optimize and im-prove the banking mechanism, reduce inflation and increase customer focus on banking products. It is noted that the use of the tool not only improves the social situation, but also contributes to additional activities in the construction sector, financial, insurance market, thereby increasing the investment attractiveness of the coun-try as a whole. The understanding of the term, the relationship with financial and economic relations, as a collaboration: a bank, a borrower, a financial institution is presented. The principles of housing mortgage lending and their implementation in the conditions of the Russian market are disclosed. The classification, types of mortgage lending, orientation and programs, taking into account the differentiation of clients, interest rates and social orientation, are generalized. The second part of the article is devoted to hedging risks and the reasons for their occurrence as a result of inconsistency with the nature and scale of the credit institution's activities, the requirements of the current legislation and violations in the banking sector.

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