Methodological approach to refinancing land mortgages: schemes of member interaction and mortgage assets security tools

One of the most important issues of formation and development of the system of land and mortgagelending is the institutional basis for the development of mortgage relationships in the industry. An important, if not the main, componentof the infrastructure of mortgage of land is the system of attracting financial resources (finance and credit infrastructure). The analysis ofdevelopment of mortgage lending practices and structure of attracted resources of Russian commercial banks showed that the volume ofmore than 3 years of deposits is less than 6% of the total volume of attracted funds; and the functioning of the Russian banking systemcreates a possibility of withdrawing these funds by investors. Therefore, the main source of funding for banks involved in landmortgages is their own capital, hence the limited volumes of mortgage crediting. In this connection, there is an importance of theeffective functioning of the system of refinancing of credit institutions. The term "refinancing" can be interpreted in two ways. From thepoint of view of lenders it is the creditor compensation expenses on mortgage loans by issuing mortgage-backed securities or resalerights requirements on loans by mortgage agents. From the point of view of the borrower refinancing the borrower's debt repayment isbased on one or more mortgages by obtaining a new mortgage loan. Typically, refinancing of land mortgage loans is possible throughmortgage market, which includes markets mortgage loans and mortgage loans. The process of refinancing mortgages is inextricablylinked with the process of security provision. Security provision is defined as the process of creating bonds of participation; the processof combining the cash proceeds received from individual mortgages to issue various securities; the process of turning mortgages intolong-term securities. In our opinion, the following definition is the most accurate: "the process of issuing securities, secured packages ofmortgage loans. On the basis of the article the study concluded that the main limiting factor and one of the main sources for mass landdevelopmentof hypothecary crediting is the possibility of refinancing and security provision of mortgage portfolios of land, which willprovide long-term resources to increase land and mortgage lending in Russia.

Keywords

Authors

References