Mortgage-backed securities

Federal law on mortgage securities was adopted by State Duma in first reading Oct. 14, 2003. Without it the law "On mortgage". This law is more social than financial. In many countries, financing of housing based on mortgage securities. Buyer of mortgage securities is being protected from the risks: the rights of the owner reserved a mortgage loan and real estate. Thus, mortgage-backed securities - a kind of securities, which are a means of refinancing investment in housing facilities, which are acquired through a mortgage. Refund is made in a shorter period, compared with a maturity amount of the mortgage. Purpose of mortgage securities - is to minimize the risk of late return of borrowed funds for investment in construction on the mortgage. There are three types of mortgage-backed securities: - mortgage-backed bonds - a security, fulfillment of the obligations which the secured mortgage cover - mortgage participation certificate - it is a security that certifies the holder the right to share common ownership of the mortgage cover - mortgage - registered certificate, which certifies the holder's right to receive the execution of the undertaking, which is secured by real estate. In Russia, the most common type of mortgage security is a mortgage. The concept of mortgage first appeared in 1998 in the law "On mortgage". Mortgage itself may be subject to the pledge. The scheme of bank refinancing by issuing mortgage-backed securities secured by mortgages: - legal or physical persons bank signs a loan agreement secured by real estate (mortgages with registration) - mortgages from the bank repurchased mortgage agencies - funds received from placing bonds on the stock market be returned to the lender - the government gives the guarantee payments on mortgage securities. Mortgage-backed securities are characterized by indicators such as: - reliability - transparency - long term. As a result of the history of private property rights in Russia were first hints of a mortgage. The very same story mortgages began in the XVIII century, during the reign of Empress Elizabeth. By the end of the XIX century was opened 11 joint-stock mortgage banks, most of them at the time was the Moscow People's Bank. Mortgage banks have ceased to exist in Russia after the October events. In our time, to the early 90's, in Russia there were only 2 - 3 banks which practiced mortgage lending. But mortgage programs at that time in Russia was quite small. Today, the mortgage is a system of long-term loans given for purchase of their own homes. Mortgage Law was adopted on 24 June 1997.