The Russian government has clarified the requirements for banks and organizations issuing mortgages, according to the resolution of the Cabinet of Ministers.
“A resolution has been signed that establishes more stringent requirements for banks and organizations providing mortgage loans. The main goal is to ensure the reliability of organizations that are included by DOM.RF JSC in a special list and receive the right to issue mortgage loans to citizens,” Interfax reports with reference to the text of the document.
The resolution will come into force on September 1, 2024 and will be valid until September 1, 2030.
According to the document, the simplified procedure for including organizations with municipal participation in the list is cancelled. In addition, the inclusion of consumer cooperatives and microfinance organizations in the list is prohibited.
Before including an organization on the list, the reputation of the founder, the presence of a positive financial result, and the absence of bankruptcy cases will be checked.
In addition, the document provides additional grounds for depriving banks and organizations of the right to issue housing loans. This may be a failure of the loan portfolio to meet established requirements and failure to comply with the procedure for checking the solvency of borrowers. Also, a bank may be deprived of the right to issue a mortgage if it issues a loan to the same person two or more times a year.
Source: Rosbalt
Mario Twitchell is an accomplished author and journalist, known for his insightful and thought-provoking writing on a wide range of topics including general and opinion. He currently works as a writer at 247 news agency, where he has established himself as a respected voice in the industry.
