Types of mortgage securities. Mortgage-backed securities. mortgage securities market. Basic concepts and types

In Germany, the MBS market developed thanks to credit institutions. Distinctive feature is that the securities are issued directly by the loan arranger within the framework of strict regulatory regulation.

Considering the fact that the stock market has just begun to gain momentum, and financial literacy population still requires close attention and support from the state, the most applicable experience for the domestic market may be the experience of the United States, where state-owned mortgage companies were at the helm.

But the possibility of combining both models is not excluded, which implies the creation of a state mortgage company and empowering banks to issue securities themselves.

MBS circulation scheme

The circulation scheme of MBS, with the participation of the state mortgage company, will look like this:

1. An agreement is concluded between the bank and the borrower to issue a mortgage loan.
2. The borrower transfers the property he purchased to the bank as collateral.
3. The bank, based on the mortgage loans it has issued, forms a so-called “mortgage pool” (a group of mortgages of the same type) and sells it to the Mortgage Company.
4. The mortgage company provides resources to the bank in the form of fees for mortgages.
5. A mortgage company issues securities based on a “pool of mortgages.”
6. Investors purchase an MBS from a mortgage company. Payment of interest on them is carried out through the repayment of the mortgage loan by the borrower.

In general, MBS are a very promising investment instrument that can expand not only the range of offers on the securities market, but also contribute to solving the problem of residential mortgage lending in the country.

In developed countries, it was the expansion of the volume of resources attracted to mortgages from the securities market that made it possible to reduce the cost of mortgage loans. As a result, MBS have become the main mechanism for attracting funds from the capital market to the housing sector.

Within the competence of the Federal Law “On Mortgage Securities” dated November 11, 2003 No. 152-FZ

1. Mortgage-backed bond– a bond, the fulfillment of obligations under which is secured in whole or in part by the mortgage security.

Mortgage coverage – claims secured by a mortgage for the return of the principal amount of the debt or for the payment of interest under credit agreements and loan agreements, incl. certified by mortgages.

Mortgage participation certificates

Cash in Russian currency or in foreign currency.

State Central Banks

Real estate in cases provided for by law

Payment of interest must be made at least once a year. These are coupon bonds. These bonds can be issued credit organizations And mortgage agents(- a specialized commercial organization that meets established requirements and whose exclusive activity is the acquisition of claims on loans and the acquisition of mortgages). They are issued only in the form of documentary bearer securities or registered non-documentary securities.

2. Mortgage participation certificate– registered share investment market undocumented securities, certifying the share of its owner in the right of common ownership of the mortgage coverage; as well as the right to demand proper trust management of mortgage coverage, the right to receive money. Wed as income from this Central Bank. It is not an issuing Central Bank.

Owners bear the risk of default on the obligations on which the mortgage is covered.

3. Mortgage– in accordance with the mortgage agreement, the mortgagee-creditor (bank) has the right to receive satisfaction of its claims against the debtor from the value of the mortgaged real estate of the other party.

Used literature on the topic:

1. Civil Code RF

2. “On the securities market” Federal Law dated April 22, 1996 No. 39-FZ

3. “On JSC” Federal Law dated December 26, 1995 No. 208-FZ

4. “On mortgage-backed securities” Federal Law dated November 11, 2003 No. 152-FZ

5. “On promissory notes and bills of exchange” dated March 11, 1997 No. 48-FZ

6. Galanov V A. Securities market. M: Infra-M, 2010

6. Genesis of the Russian stock market: textbook. manual for university students studying in the direction 080100.62 Economics / E.S. Vasiliev, T.G. Volkova, R.A. Galiakhmetov. - Izhevsk: IzhSTU Publishing House, 2012

7. Kilyachkov AA, Chaldaeva L A. Securities market and stock exchange business. M.: Yurayt, 2010.

Topic 8. Financial institutions

The implementation of investment demand and supply is carried out by financial intermediaries endowed with broad capabilities to serve the investment and financial needs of economic entities. Such intermediaries are called - financial and credit institutions (FCI).

FKI - These are organizations that mobilize investment resources of households and the production sector, with their subsequent investment in financial markets in the form of investment or vessel capital.

Types of FCI:

Commercial banks

Insurance companies

NPF (non-state pension funds) + PFR ( Pension Fund Russia)

Investment companies

Investment funds.

Stock exchanges

Credit unions.

Pawnshops

A separate group among FCIs are ANDcollective investment institutions.

With collective investing in the financial market, funds invested by a large number of investors are combined into a single pool (fund) under the management of a professional manager for their subsequent investment in order to obtain investment income.

As a rule, forms of collective investment have the following characteristics:

Funds are raised by placing securities or concluding agreements;

The main activity is investing collected funds in securities and other property permitted by law;

The main share of investment income is obtained in the form of income from securities and transactions with financial assets;

Distribution of income received from investment among participants in a collective investment scheme in the form of dividends, interest and other payments.

Collective investing has a number of advantages:

possibility of professional management;

diversification (diversity of investment locations in order to reduce investment risk);

reduction of costs associated with investment;

access to foreign financial markets;

protection of investors' rights

use of a favorable tax regime.

Types of collective investment in world practice:

1. Corporate investment (forms are created in the form of joint-stock companies, fund participants are shareholders. The management company works in their interests) - USA, Luxembourg

2. Trust (funds are created on the basis of a contract between the trustee and the owner or trustee of the fund) – Australia, South Africa, New Zealand, USA

3. Contract (fund assets belong to the management company) – Germany, Italy, Switzerland, Japan.

Collective investors in the Russian Federation include::

Investment funds managed by management companies

Mutual Funds - mutual investment funds;

AIFs - joint-stock investment funds;

Non-state pension funds (NPF);

Credit consumer cooperatives of citizens.

Investment fund- a property complex owned by a joint-stock company, or in the common shared ownership of individuals or legal entities, the use and disposal of which is carried out by the management company exclusively in the interests of the founders of the fund (shareholders, shareholders). [Federal Law “On Investment Funds”]

AIF- This is an OJSC whose exclusive activity is the investment of property in securities and other objects provided for by law. (real estate, precious metals, venture investments, etc.)

Not entitled to carry out other types of activities other than investment. Has a license. Shareholders may be individuals. and legal persons other than the special depository, registrar, appraiser and auditor serving the AIF. AIF property is divided into: property intended for investment (investment assets) and property intended to support the activities of the fund's bodies. The assets of the AIF (investment assets) are transferred to trust management by the management company. AIF shares must be ordinary shares only, and must be paid in full upon placement, and only in cash. Dividends are paid based on the results of the financial year, if there is a profit of the AIF, that is, if the amount of net assets at the end of the year exceeds the amount of net assets at the beginning of the year.

mutual fund This is a separate property complex consisting of property transferred to trust management by the management company, the founders of trust management (shareholders), with the condition of combining this property, and property received in the process of trust management. The share in the ownership of this property is certified by a security - share.

Investment share - a registered security certifying its owner’s share in the ownership of the property constituting a mutual investment fund. The share gives the following rights to the shareholder:

The right to demand from the management company the proper management of the mutual fund;

The right to receive monetary compensation upon termination of the mutual fund trust management agreement with all shareholders;

The right to purchase or sell shares from the management company that manages the mutual fund or from its agents.

Each share certifies the same share and gives the same rights, while it is not an issue-grade security or a book-entry security. Rights to shares are taken into account by a specialized depository or register holder. A mutual fund is not a legal entity, therefore there is no income tax or other taxes for legal entities, there is only personal income tax! The estimated value of an investment unit is determined by dividing the NAV (net asset value), calculated on a day not earlier than the day of acceptance of applications, by the number of investment units of the mutual fund.

NAV = Assets - liabilities of the mutual fund.

Estimated share price = NAV/number of shares.

Actual share price (purchase) = Settlement price + premium (max 1.5%)

Actual share price (sales) = estimated price - discount (max 3%)

Income = (Actual sale price - Actual purchase price)

Income (if any) is subject to personal income tax.

Types of mutual funds.

1. Depending on the method of submitting applications for the purchase/sale of shares, funds are divided into:

open

closed

interval

IN open mutual funds The shareholder has the right on any working day to demand that the management company accept an application for the sale or purchase of a share.

IN interval mutual funds such a right exists only during established periods, but at least once a year.

In closed mutual funds, the shareholder does not have such a right.

The purchase of shares is carried out at the beginning, and the sale at the end of the mutual fund's validity period. A closed mutual fund has a validity period from 3 to 15 years.

2. Depending on the method of placing mutual funds, mutual funds are:

Mutual fund of shares

Mutual Fund of bonds

Mutual investment fund

Money market mutual fund

Direct investment mutual fund

Mutual fund for venture investments

Mutual Funds

Rental mutual fund

Real estate mutual fund

Mortgage mutual fund

Index mutual fund

Credit mutual fund

Commodity market mutual fund

Hedge - Mutual Fund

The management company (MC) managing the assets of the mutual fund does not have the right to:

alienate the assets of the mutual fund free of charge;

does not have the right to purchase AIF shares and mutual fund property under trust management;

does not have the right to acquire for the mutual fund property owned by this management company;

Does not have the right to purchase securities issued by a special depository, registrar, appraiser, or mutual fund auditor;

Does not have the right to use property owned by the mutual fund to ensure the fulfillment of its own obligations!!

Non-state pension funds (NPF)- this is a special organizational and legal form of a non-profit social security organization, the exclusive type of activity of which is non-state pension provision of fund participants on the basis of agreements on non-state pension provision of the population with fund investors in favor of fund participants, as well as the implementation of compulsory pension insurance as part of the management of a funded fund part of the labor pension.

Species NPF activities are:

Activities for non-state (voluntary) pension provision of participants in accordance with non-state pension provision agreements;

Acting as an insurer for compulsory pension insurance in accordance with contracts on compulsory insurance education;

The main activity of the NPF is non-state pension provision. This activity includes the following:

Accumulation of pension contributions of participants

Placement and organization of placement of pension reserves

Accounting for pension obligations in funds

Assignment and payment of non-state pensions to fund participants

The fund's activities as an insurer compulsory pension insurance includes:

Accumulation of funds pension savings(cumulative part of labor pension)

Organization of investment of investment savings funds

Accounting for pension savings of insured persons

Assignment and payment of the funded part of the labor pension to insured persons

Subjects

PFR (Pension Fund of Russia)

investors

participants

policyholders

insured persons

specialist. Depository

Participants relations on non-state pension provision and compulsory pension insurance are:

• credit organizations

  other organizations involved in the process of placing funds in pension reserves

Terminology used by NPF:

Investor- an individual or legal entity who is a party to a pension agreement and pays pension contributions to the Pension Fund.

Policyholder- an individual or legal entity obligated to transfer insurance contributions to finance the funded part of a labor pension in favor of the insured person.

Participant- an individual to whom non-state pension payments are to be made or are being made.

Insured person- an individual who has entered into an agreement on compulsory pension insurance.

Pension reserves- funds for the fulfillment of NPF obligations to participants.

Pension savings- means for fulfilling obligations to insured persons.

Credit Union is a consumer cooperative of citizens created by citizens who voluntarily united to meet the needs for mutual financial assistance.

Cooperatives can be created on the basis of: community of residence, work activity, professional affiliation or any other community of citizens. The number of members can be no less than 15 and no more than 2000 people.

The main principles of the activities of credit unions are:

voluntary entry;

freedom of exit;

equality of rights and duties of all its members;

personal participation of members in the management of the credit union;

Property of a credit cooperative (union) is formed from the share contributions of its members, income from financial activities carried out by credit unions, as well as from sponsorship contributions and charitable donations. The property belongs to the cooperative on the right of ownership.

Share contributions are funds transferred to members of a credit union into the ownership of the credit union for the implementation of its activities.

The personal savings of members of a consumer cooperative, attracted by it, are not its property and are not burdened with the fulfillment of its obligations.

Personal savings are funds transferred by a member of a cooperative to a cooperative on the basis of an agreement for use in accordance with the goals of the citizens’ credit cooperative.

Mutual Financial Assistance Fund - funds used by a credit cooperative and formed from the cooperative’s own funds and the personal savings of its members.

The funds of the credit cooperative are divided into:

1. Mutual Financial Assistance Fund

2. Funds necessary to carry out activities as a legal entity.

The Mutual Financial Assistance Fund is used to provide loans to cooperative members. The temporarily free balance of the mutual financial assistance fund (no more than half of the fund) can be used exclusively for the acquisition of state and municipal securities, as well as for storing them in bank deposit accounts.

issue loans to citizens who are not members of the credit union;

Issue loans to legal entities;

Act as a guarantor for the obligations of your own or third parties

Contribute property to the authorized capital of third parties;

Buy shares and securities

You cannot carry out transactions on financial markets using these funds.

Issue your own securities.

The transfer of funds from the cooperative to its members is formalized by a loan agreement, the agreement is drawn up in writing. The cooperative can provide its members with the following services:

consulting;

conclude insurance contracts on behalf and on behalf of its clients, but in accordance with its Charter.

Members of a consumer cooperative have the right:

use all services provided by the cooperative

participate in the management of the cooperative

transfer personal savings to a cooperative

get loans

receive information about the activities of the cooperative

upon termination of membership in the cooperative, receive the monetary value of a share of the property of the cooperative.

The bodies of the credit consumer cooperative of citizens are:

General meeting of members of the cooperative, board of the cooperative, audit commission of the cooperative, director.

Credit organisation- a legal entity that, in order to make a profit as the main goal of its activities, on the basis of a special permit (license) of the Central Bank of the Russian Federation (Bank of Russia), has the right to carry out banking operations provided for by law..

Bank- a credit institution that has the exclusive right to carry out the following banking operations in total:

Attracting funds from individuals and legal entities into deposits,

Placement of these funds on your own behalf and at your own expense on the terms of repayment, payment, urgency,

Opening and maintaining bank accounts for individuals and legal entities.

Banking operations include:

1) attracting funds from individuals and legal entities to deposits (on demand and for a certain period);

2) placement of raised funds on one’s own behalf and at one’s own expense;

3) opening and maintaining bank accounts for individuals and legal entities;

4) carrying out transfers of funds on behalf of individuals and legal entities, including correspondent banks, through their bank accounts;

5) collection of funds, bills, payment and settlement documents and cash services for individuals and legal entities;

6) purchase and sale of foreign currency in cash and non-cash forms;

7) attraction of deposits and placement of precious metals;

8) issuance of bank guarantees;

9) making money transfers without opening bank accounts, including electronic money (with the exception of postal transfers).

Credit institution in addition to the listed banking operations has the right to carry out the following transactions:

1) issuance of guarantees for third parties, providing for the fulfillment of obligations in monetary form;

2) acquisition of the right to demand from third parties the fulfillment of obligations in monetary form;

3) trust management of funds and other property under an agreement with individuals and legal entities;

4) carrying out transactions with precious metals and precious stones in accordance with the legislation of the Russian Federation;

5) leasing to individuals and legal entities special premises or safes located in them for storing documents and valuables;

6) leasing operations;

7) provision of consulting and information services.

A credit institution has the right to carry out other transactions in accordance with the legislation of the Russian Federation.

All banking operations and other transactions are carried out in rubles, and, if there is an appropriate license from the Bank of Russia, in foreign currency. The rules for carrying out banking operations, including the rules for their material and technical support, are established by the Bank of Russia in accordance with federal laws.

Credit organization prohibited engage in manufacturing, trading and insurance activities.

All banking operations can be divided into active and passive. Examples of active and passive operations are given in the table.

Features of the activity investment banks- is their focus on attracting long-term capital and providing it through long-term lending, acquisition of securities and participation in the founding activities of other legal entities.

Mortgage banks receive and place funds on a long-term credit basis secured by real estate. A feature of raising funds in such a bank is the issue mortgage securities- mortgage-backed bonds and mortgage participation certificates.

Trust Banks- specialize in the implementation of trust management on the basis of an appropriate license.

References

The development of mortgage housing subsidies in Russia is one of the main tasks of the state. However, the interest rate on collateral is often high, making it impossible for many potential borrowers to take out a loan. According to experts, mortgage-backed securities - MBS, which are a mechanism for investing funds, will help level out the resulting imbalance. The owners of the mentioned documents are able to profit from changes in the price of real estate, as a result of which these securities were issued - Central Bank. The current situation suggests that they are positioned as the most desirable financial documents on the lending and securities market.

Such securities containing property rights are represented by debt securities that reinvest investments of financial institutions in mortgage lines of credit. This happens in the following way. Banking institution issued loans, for example, for 50 million rubles, and immediately issued certificates of property rights for the same amount. Arrived property documents the investor returns the amount spent by the bank, which immediately goes as a credit line to another borrower. Having sold the property certificate, the bank repays the issued amount with the applicant’s repayable funds.

These financial instruments are gaining great popularity because they are secured by real estate. Their profitability is determined by an increase in the value of real estate, which annually gains a certain number of percentage points. Over the past 10-15 years, the growth in profitability has reached 400%, which cannot be achieved by any other financial mechanism. Investments in securities are usually long-term - up to 20 years, but Russian investors prefer shorter terms, maximum 5.

Maybe, short term is explained by the lack of a good legislative framework, which cannot be said about European and American financial markets. And our banks have a good financial base, which affects their reluctance to deal with property certificates.

Features of mortgage-backed securities

The publication of these property certificates takes on a variety of specifics, which still have some characteristic features, such as:

1. As a rule, holders of such documents pay systematic payments. They differ in monthly or quarterly terms.
2. Payments from assets combined after consolidation are usually divided into two parts - interest and depreciation. The first is for using the credit line, the second is for repaying it. Depreciation is also presented in two planned variations.
3. The first is activated by the procedure of systematic repayment of the credit line, which leads to full payment before the end of its validity period. Corporate bonds work in a different way. The line is not redeemed until its expiration; it is only supported by the payment of the bond's face value - the coupon rate.
4. Premature repayment of the line is determined by the borrower’s ability to close the loan early through the sale of real estate, which was collateral at the conclusion of the agreement.

Of course, at the same time, certificates have some disadvantages, for example:

• low level of feasibility;
• the presence of a risk of prolonged repayment, which is not conducive to calculating profitability.

Among the advantages, it should be noted the proper level of legal protection, durability, and general accessibility.

MBS in Russia

The domestic market tested the bonds in question at the beginning of the 2000s, after the law regulating mortgage lending came into force. Many entrepreneurs were attracted by their thorough legal protection and easy feasibility. Such certificates are of interest to investors who want to invest financial resources into real estate for future profit.

Mortgage loans have received a legislative basis and the number of borrowers is constantly increasing. The practice of consumer subsidies in past years has proven attractive to the population and commercial financial institutions. Its volume increases significantly every year. This is explained by the growth of household incomes and the expansion of the scope of activities of banking institutions.

In addition to the appearance of mortgage certificates on domestic market, financial institutions began issuing Euromortgage bonds. They are characterized by three tranches, different in volume, assigned rating, and profitability. The eldest of them has the highest indicators typical of Russian bill issuers. The circulation period of documents is at least 29 years.

The main goal of issuing IBC is aimed at attracting long-term resources to the capital market, which will be used for loans to the population. This also includes subsidies that have undergone government registration, real estate property bonds pledged by Vneshtorgbank, insured by the largest Russian insurance agencies.

Relations that arise during the issue, circulation of securities, their issuance, except for mortgage documents, are regulated by the Federal Law on Mortgage-Based Securities.

Types of securities

Many securities are represented by documents secured by property, various valuables, bonds, mortgages, and credit certificates.

Mortgage

The described registered document confirms the right of its owner to receive fulfillment of an obligation that is covered by a guarantee of real estate. The mortgage function is designed to speed up the turnover of mortgaged real estate based on transfer monetary document. The presence of this certificate leads to the conclusion of a mortgage agreement, and the mortgage certificate is given its priority. If the terms of the transaction do not match, the contents of the mentioned document will allow it not only to be optimized, but also to make adjustments. Other cases deem the document invalid, such as:

• violation of the procedure for issuing paper;
• the presence of an existing duplicate when the original is lost.

You can only obtain a copy from the mortgage agreement registration authority.

Mortgage-backed bonds

The mentioned bonds are secured by housing coverage, for which the issuer's agreement is fulfilled. They are positioned as personalized valuable documents. The bond confirms the contribution of financial resources by its owner, the obligation of the issuer to return the nominal value of the bond, cash income. If the issuer fails to comply with the agreement, the holder has the right to satisfy the requirement for the coverage account.

Mortgage bonds are:

• ordinary;
• structured.

The issue of the former is carried out by mortgage lenders, the latter by specialized mortgage organizations that are responsible for the implementation of agreements on these documents.

Mortgage bonds are issued in a non-documentary manner. The global certificate of issue of bonds contains their name, references to ensuring housing coverage of the issuer's obligations. Other details may be present as required by law.

Mortgage certificates

Presented valuable certificates secured by assets or mortgage. May be issued in the form of fixed income certificates, or. Certificates have a turnover period, with a fixed return - a nominal price, participation certificates - part of the total amount of debt formed by extending the validity of loans, or combining previously issued ones into one. Moreover, the nominal price and the period of circulation of documents must be the same. The price is set in national currency, taking into account inflationary warnings. The required details of the described documents are:

• the phrase mortgage certificate is represented by part of its name;
• full name, location of the body producing the emission;
• indication of type - registered or bearer;
• number, series of the document;
• the face value of a fixed-income securities market, or part of the consolidated debt that is attributable to the participation document tied to the date of registration of the publication;
• period of circulation of the certificate, procedure and time of payment;
• information on securing this issue of securities;
• on insurance of the certificate owner against currency and other risks;
• signature of the head of the institution conducting the issue;
• presence of wet printing.

The personal document must contain the name and legal address of the owner - for corporate holders, passport details - for individuals.

Such securities are issued by structures operating on a commercial basis. The latter are required to have an appropriate license allowing them to manage the structures of investment resources.

Return on investment securities

The yield category is based on the average rate at which mortgage loans are issued. If the interest rate reaches 15 units, then the profit can vary from 9 to 10%. The remaining amount reimburses the costs of intermediaries.

A rate cut also leads to a decrease in profitability. Applicants have the right to refinance at a lower rate or repay the debt early. The latter results in the redemption of the issued bond, which affects the decrease in the investor’s income.

How to buy MBS

All valuable property certificates, mortgage documents purchased on the stock exchange. The investor has the right to independently complete the deed of purchase, or through agents, trustees of specialized organizations leading the mortgage securities market.

The investor, first of all, needs to decide on investment tools. The property securities market has two interrelated categories - risk and return. However, as profitability increases, risk situations also increase, and vice versa.

The following concepts are arranged in descending order of profitability and risk:

• government bonds;
• bank deposits, deposit accounts, monetary obligations;
• corporate interest bonds;
• shares of industrial enterprises;
• derivative financial securities.

The investor has the right to choose to independently manage his personal portfolio of documents, or transfer them to professional market partners. The latter are expressed by the following attributes of trust management of deposits:

• mutual investment fund;
• trust management of banking organizations;
• an agreement for the private management of an investment company with an advisory license.

Legislation imposes some restrictions on market partners, which is reflected in a reduction in the range of instruments. The transfer of property certificates and financial assets to departments often turns into round sums. Mutual funds charge up to 5% per annum of net asset price for their services, regardless of the results obtained. Financial institutions and investment agencies take up to a quarter of the income received from the investor. Yes, and the company makes decisions, but it still places responsibility on the investor. Based on the above, you can make either a profit or a loss. Of course, self-direction can be even worse.

An investor can trade property securities himself, but he does not have the right to voluntarily enter the exchange where trading participants are located. The best solution he will find a good broker, the following criteria will help him evaluate:

• reliability, high professionalism;
• availability of the necessary license;
• membership in the Russian Commodity or Interbank Currency Exchange;
• commission amount;
• Availability of remote access for clients.

Consultations will help a novice investor investment companies, brokerage agencies.

Conclusion

The development of the mortgage lending sector is leading investors to invest in housing loan securities. Their high yield will allow the owner to receive high mortgage swaps in the future. However, the investor must decide who he will entrust the management of the bonds to, whether he will use the services of a trust company or an exchange broker.

Please schedule a free consultation with our lawyer to clarify whether investing in MBS is right for you. It's free.

We are waiting for your questions and will be grateful for your rating of the article and repost.

The Federal Law on Mortgage-Based Securities was signed on November 11, 2003. Its essence lies in the fact that now every person or organization can become investors in a housing mortgage fund. Securities are secured by collateral and repayable loan obligations of borrowers. Risk insurance is provided by large insurers.

Federal Law No. 152 is intended not only to regulate the financial relations of lenders, borrowers and potential investors in the housing construction market. This normative document was developed primarily to obtain an instrument for effective investment of funds from various government funds.

Thus, if you look at the experience of Western countries, you can see that up to more than half of the funds accumulated for pensions are placed in mortgage and housing securities. Today in our country the effect of this law is limited to certain circles. mutual funds do place part of their investment funds in mortgage-backed securities. However, this financial instrument never fully worked.

The crisis of 2015 had an impact with a sharp drop in denomination national currency. Investing in housing construction has become unprofitable due to the high risk of bankruptcy. The Law on Bankruptcy of Individuals has only aggravated the risks of potential investors.

Basic concepts of the Federal Law on mortgage-backed securities

To begin with, it is worth understanding the basic basic concepts on which the Federal Law on mortgage-backed securities is built. This regulatory document operates with the following concepts:

• By mortgage-backed securities, the law understands documents secured by collateral that give the right to receive a certain profit in the future;
• Mortgage-backed bonds are securities issued by financial institutions using their portfolio as collateral. mortgage agreements fully secured with collateral real estate;
• a housing bond is secured only by collateral risks and is not a document giving the right to share participation in the distribution of credit profits;
• a mortgage agent can be a specialized organization operating within the framework of a license issued by the Central Bank of Russia; its activities are aimed at the formation of packages of mortgage-backed securities and mediation between banks and potential investors in the housing market of the Russian Federation;
• A mortgage participation certificate is also a security, but with limited validity, so its holder cannot claim distribution of profits received from the sale of collateral property.

These basic terms are at the heart of the federal mortgage-backed securities law. They can only be used to secure the obligations assumed by the creditor. Financing is carried out within the framework of concluded investment agreements. The amount of dividends to be paid is determined during a meeting of the board of directors of the credit institution and in agreement with the mortgage agent.

What is mortgage coverage?

According to the Federal Law on Mortgage-Based Securities, they are all mortgage-backed and insure the investor against possible risks of losses due to the presence of collateral and credit obligations of borrowers.

What is mortgage coverage under the federal law described? These can be real estate, mortgages, loan obligations to repay the principal amount of debt and interest accrued for the use of financial resources. Everything that guarantees the safety of an investor's investment in securities is mortgage coverage. The bank that issues the mortgage securities is responsible for the safety of these funds. Responsibility for compliance with legislation in this area lies with the mortgage agent, who has a specially issued permitting license.

Thus, the mortgage agent has the opportunity and direct responsibility to conduct full audits of the financial organization and respect the rights of investors in the area of ​​safety of invested financial assets.

An exception to mortgage coverage is the amount that covers more than 80% of the assessed value of the collateral property. In practice, this means that if a borrower takes out a mortgage loan without a down payment, then when including this asset in its package of mortgage securities, the bank is obliged to cover 20% of the amount from its financial assets.

A residential mortgage loan agreement is mortgage coverage for the issue of securities, certificates and bonds. But there are a number of federal law requirements for the preparation of this document:

1. the form of the agreement must indicate that it only involves settlement in the form of a transfer of cash or non-cash funds (settlement by barter is not provided for by current legislation);
2. the mortgage agreement must be accompanied by an insurance policy against the risks of damage and loss of the purchased property;
3. the mortgage loan agreement is concluded for a certain amount of financing, it should not exceed 80% of the appraised value of the property being purchased;
4. The contract is accompanied by an assessment of the market value of an apartment, house, room, or detached commercial building;
5. it is mandatory to formalize collateral obligations with the receipt of the mortgage and its transfer for safekeeping to the credit organization that is the mortgagee;
6. the agreement must indicate that the mortgagor does not have the right to alienate this property without the appropriate permission of the creditor until full fulfillment of all financial obligations to the bank.

All real estate for which registration has not been carried out is subject to exclusion from mortgage coverage. insurance policy for all points and risks provided for by the mortgage law. All other types of insurance are optional. And if the borrower does not take out a mortgage insurance policy for the property, then the bank does not have the right to include this agreement in its loan portfolio and transfer it to the database of mortgage securities. Thus, the credit institution does not receive a return of funds and loses its working capital for the entire period of lending to its borrower. This becomes a legitimate justification for raising interest rates.

Mortgage agent: form of organization, rights and obligations

A mortgage agent is a specialized organization whose rights and responsibilities include regulating the Russian mortgage securities market. A mortgage agent can work in the legal form of an organization in the form joint stock company open and closed type, limited liability companies. To start activities, it is necessary to register a legal entity, issue all the required permits and obtain a license from the Central Bank of Russia, which gives the right to conduct financial activities on the territory of the Russian Federation.

The mortgage agent has the following rights and responsibilities:

• it can purchase loan obligations from banking institutions;
• check the bank’s work in the field of managing collateral assets and ensuring the safety of mortgage coverage in order to comply with the principles of limiting the risks of potential investors;
• after repurchase of loan and collateral obligations, form a separate package of investment proposals;
• attract borrowed funds from the disposal of both individuals and legal entities located on the territory of the Russian Federation or abroad;
• control the process of distribution of means of profit;
• participation in meetings on the distribution of dividends received.

In another way, the agent may be called a specialized mortgage organization. One of the two names that reflect the main essence of economic activity must be included in the formation of the full name.

A mortgage agent is not a full-fledged commercial organization and does not have the right to enter into contracts with individuals on a reimbursable (paid) basis. Any entrepreneurial activity related to the sale of information or the transfer of valuable information, provides for liability in the form of judicial liquidation of the organization.

Voluntary liquidation of a specialized mortgage organization is possible only after it has fulfilled all its obligations.

Mortgage cover register

Each mortgage agent is required by the federal mortgage-backed securities law to maintain complete records. The mortgage cover register is a database in which all accepted objects must be entered for investment of borrowed funds.

The register of mortgage coverage is maintained simultaneously in electronic and paper format. The deadline for entering the received information is 24 hours after receipt and processing. Controlling government bodies (Central Bank of Russia), credit organizations on whose balance sheet this collateral is located, investors and holders of certificates and bonds have access to information from this register.

The following information must be entered into the mortgage coverage register:

• full address of the property location;
• its estimated cadastral and market liquid value;
• provision of collateral obligations;
• validity period of the concluded mortgage loan agreement;
• types of insurance applied to this property;
• potential profit margin on an annualized basis;
• a note on attracting borrowed funds to refinance a loan;
• the remaining share subject to restructuring by attracting investment packages.

All this information must be provided to holders of mortgage-backed securities upon their written request. All information regarding the loss of collateral, replacement, increase or decrease in its market liquid value must be promptly entered into the register.

Forms of certification of rights

When issuing a mortgage-backed bond, a special form of certification of the rights of its holder is used. As security, paper and electronic denominations may be issued indicating the collateral coverage and obligations.

The main form of ensuring the right of the owner of a security is its inclusion in the state register. This register is maintained by government agencies. Even if the paper or electronic version of a bond or certificate is lost, an investor can contact the Central Bank of Russia with a request to restore his legal rights. After which an identification document will be issued. This certificate makes it possible to receive interest and dividends. You can also use it to order the issue of duplicates with the denominations of previously issued bonds and certificates.

Interest and security for its payment

After issuing mortgage-backed securities and placing them on the financial market, the mortgage agent is required to make interest payments. the amount of profitability is determined in advance in agreement with the financial organization that is the mortgagee of the real estate. Then, when attracting investments from legal entities and individuals, the contract specifies the date of payment of accrued interest and the amount of profitability. throughout the entire period of raising investment funds for the issue of mortgage securities, a decrease in the specified percentage of yield is not allowed.

Payments cannot be made less than once a year. Otherwise may be stipulated by the terms of the contract. But paying interest less than once every twelve months is not allowed by the law on mortgage-backed securities.

Ensuring guaranteed payments to holders of bonds and certificates is carried out through collateral mortgage coverage. Every bank has funds authorized capital. If these reserves decrease, the Central Bank initiates the revocation of the license and termination of the credit institution. The non-reducibility of the balance of own assets is a guarantee of the ability to fulfill all the bank’s obligations assumed financial obligations to investors.

Issue (issue) of mortgage securities

The issue or release into circulation of mortgage-backed securities is strictly regulated by the current version of the Federal Law. Quite stringent requirements are imposed already at the stage of forming the initial package of proposals for potential investors.

In particular, you should pay attention to the following parameters:

• before issuing mortgage-backed bonds, a register must be compiled that contains all the basic information regarding the collateral real estate;
• the volume of issue is limited to 80% of the liquid market value of the collateral included in the register;
• collateral mortgaged property and the bank's own assets are accepted as collateral;
• After the sale of the entire package of the investment proposal, the register is closed and changes are made to it only in the event of replacement of property or change in its value.

When issuing a bond or mortgage certificate, the most important information is indicated in its face value:

1. the validity period of this security (usually it is limited to the term of the mortgage lending under which the collateral real estate was received);
2. full name of the legal entity or surname, name and patronymic of the individual, holder of the security;
3. face value and mortgage coverage;
4. the amount of interest accrued and paid to the holder annually.
5. also, upon issuance, all conditions of security and additional financial guarantees to the investor are prescribed.

When issuing mortgage-backed securities, preference in their placement is given to a single redemption of the entire nominal value. Therefore, most often such investment packages fall into the hands of mutual funds and other funds.

Mortgage coverage requirements

The Federal Mortgage-Backed Securities Act imposes increased coverage or collateral requirements. In particular, the bulk of the coverage cannot contain objects with low market liquidity.

It is for this reason that all banks draw up their own requirements for real estate loans. This is due to the fact that apartments located, for example, in dilapidated housing stock, do not have market liquidity and cannot be included in the register of mortgage coverage. Accordingly, it will not be possible to obtain a mortgage loan against the issued mortgage. investment funds from third party contributors.

Requirements include cost. It must be less than 80% of the face value of the issued bonds and certificates. The rest of the collateral value must be compensated by the bank from its own reserve funds.

If a consumer characteristic is lost, any property included in the register for the issue of securities mortgage securities must be replaced with a similar one at a liquid market value. This clause forces banks to act in the event that a client pays off a mortgage early.

In such a situation, the collateral must be removed from the register of mortgage-backed bonds within 30 days. After this, the fact of termination is registered collateral agreement to the registration chamber and the information is entered into the electronic database. By this time, another property should appear in the register of mortgage coverage, covering the resulting shortfall at its liquid market value.

The second case is the occurrence of an insured event. if, for example, a collapse occurs wall structures buildings and real estate are destroyed, then Insurance Company pays the bank the full amount of damage caused. In such a situation, a gap is formed in the register of mortgage coverage.

Turnover of mortgage bonds and certificates

The existing turnover of mortgage certificates and bonds implies their repayment, foreclosure of a property nature, sale and other methods of sale, including in the event of bankruptcy of the issuer.

So, in accordance with the Federal Law on mortgage-backed securities, they are the property of those holders who are indicated at par and entered in the state register of securities. Accordingly, owners of mortgage bonds have the right:

• withdraw your financial resources by redeeming a security;
• through the subsequent resale of the bond to a third party, but only with the assistance of a mortgage agent;
• require early fulfillment of obligations in the event of bankruptcy of the issuer.

Mortgage certificates and bonds may be foreclosed on in favor of injured persons in order to compensate for property damage caused. This is usually done upon request from the service bailiffs when attaching a copy of the court order, writ of execution and other legal forms of documents.

Early repayment of issued mortgage bonds and certificates is possible both at the request of the issuer and at the request of the security holder. If significant irregularities are detected in the work of a financial institution or a specialized mortgage organization, early repayment of mortgage-backed securities may be initiated Central Bank Russia. The basis for early termination of a mortgage security may be a significant change in the structural part of the mortgage coverage register.

Watch the main points of the Federal Law on Mortgage-Based Securities in the attached video, where an expert lawyer talks about all the possible difficulties of its implementation in practice for potential investors: