04.09.08

The CBR had paid little attention to the mortgage problems until recently but the latest events on the mortgage market forced the regulator to step in. The banks have declared abrupt reduction in access to long-term resources, which makes giving new mortgage loans impossible. Russia’s key refinancing organization, the Mortgage Loans Agency, has toughened the terms for the loan buyout and introduces the discount buyout starting from September 15.

The amount of bad loans is growing. It exceeds critical 20 percent in certain regions and defaulters are being evicted from flats bought on credit. Regional partners of the Mortgage Loans Agency refuse to work in these conditions.

The analysts say the local mortgage crisis has broken out and CBR is collecting the information to evaluate its extent. First of all, it is interested in the amount that the borrowers pay back in advance themselves, as well as in the amount that they refinance at more attractive rates and what portion of the loan is paid off when selling the pledged flats.

The banks will have to report about the bonds released under mortgage coverage and about direct sales of the mortgage loan pools. By these reports, the CBR will be able to monitor what portion of loans was sold because of bad quality and what portion was disposed of due to the need to have free balance.

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Source: www.kommersant.com