The authorities have found a way to reduce the cost of mortgages. The Unified Institute for Development in the Housing Sector (“Dom.RF”) will have access to the credit histories of borrowers during securitization. The relevant bill should be developed by the Ministry of Finance, the document may be submitted to the State Duma in February 2023, follows from the plan of the government’s legislative activities, which Izvestia has read.
The innovation will simplify the issuance of mortgage bonds for credit institutions, which may increase the amount of available funds in the banking sector. This will make it possible to reduce mortgage rates for trustworthy borrowers, experts said.
The Ministry of Finance told Izvestiya that today the main issuer in the mortgage-backed securities market is Dom.RF. Its access to credit histories will primarily help reduce the cost of issuing securities and increase the speed of such transactions, as well as improve the quality of the mortgage loan portfolio, the ministry said.
Additional information will improve the accuracy of the portfolio assessment and will favorably affect the conditions for securitization of high-quality mortgage loans for originating banks, which will ultimately lead to an increase in the availability of loans for borrowers, Dom.RF said.
Read more in the exclusive Izvestia article:
Capital discount: the authorities have found a way to reduce mortgage rates
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
