Bank of Russia to tighten regulation of mortgage issuance from May 2023
MOSCOW, February 20 – RIA Novosti. In a regulatory statement, he said that since May, the Bank of Russia has decided to increase premiums on risk ratios for mortgage loans.
Therefore, the regulator sets additional fees for mortgage loans secured by claims under equity participation agreements under construction.
“These surcharges account for the overvaluation of flats in the primary housing market when a buyer takes out a mortgage. In addition to the increased reserves in extremely low-rate loans that offset banks’ interest rate risks over the life of a mortgage loan, the Federal Reserve has warned that macroprudential surcharges will be applied to banks’ primary and secondary housing. “It will enable it to accumulate a capital buffer to cover the risks associated with price differentials in its markets.”
In addition, from May 1, 2023, additional fees are set for mortgage loans secured by residential real estate.
“Given that the overvaluation of the cost of housing is much less typical for the secondary market, premiums are only increased for loans from 85 to 85 with LTV (the ratio of the loan amount to the value of the property pledged to a credit institution – ed.). “Differs by 90% depending on level. The increase in surcharges will prevent further deterioration in lending standards, particularly the increase in the share of loans with high PTIs.”
Source: Ria
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