A new draft bill regarding the changes in the law on mortgage securities was introduced to the State Duma.
According to the new bill, the property shareholders’ (co-investors’) right of claim against developers is included into mortgage-secured bonds of a bank where a co-investor is getting a mortgage loan. In the current law on mortgage securities there is no such option.
If the draft bill is accepted, banks will be able to issue bonds after giving a mortgage loan. The raised money will allow banks to give new mortgages and refinance the old ones. In this case bonds will be double securities: for a bank in terms of co-investors and for co-investors in terms of developers. The authors of the draft bill expect that it will help decrease mortgage rates and increase the number of issued mortgages.
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