Electronic mortgage in the field of mortgage lending

2023: Rosbank Dom began issuing e-mortgages at the construction stage through SmartDeal

At the end of May 2023, Rosbank Dom began issuing electronic mortgages at the stage of construction of a real estate object. Release takes place with support from [[ДОМ.РФ ДОМ.РФ (formerly the Agency for Housing Mortgage Lending, AHML)|Dom.RF]]. The technical side is carried out by the company "Practice of Success," which announced this on June 8, 2023. Read more here.

2022

The volume of electronic mortgages in Russia exceeded 1 trillion rubles

At the end of 2022, the volume of issued electronic mortgages in the field of mortgage insurance in Russia increased by 80% compared to 2021 and reached 212 thousand documents in the amount of 672 billion rubles. Over five years, more than 438 thousand electronic mortgages have been issued on mortgages worth 1 trillion rubles. This is evidenced by the data of "Дом.рф," published at the end of February 2023.

By the end of 2022, according to Svetlana Nekrasova, managing director of Дом.рф, more than 20 of the largest banks in Russia have tested or completely switched to the digital format of working with mortgages, such electronic documents are issued in all regions of the country.

The volume of electronic mortgages increased by 80%

Дом.рф notes that the electronic mortgage market has great potential, since by the end of 2022 only 14% of all mortgage loans are issued with electronic mortgages, and their share in the total mortgage portfolio does not exceed 5%. Among the reasons for this situation is the uneven penetration of electronic mortgages into various mortgage products, added the financial development institute in the housing sector of the Russian Federation.

For example, as noted in the "Дом.рф," electronic mortgages are almost not issued when issuing loans for new buildings at the construction stage. Such paper is also rare in the field of loans for the construction of individual residential buildings. At the same time, in 2022, these segments accounted for more than 43% of the total issuance of mortgages in the country: 31% - for apartments in new buildings, 10% - for the purchase of individual houses, 2% - for individual housing construction.

Дом.рф develops and updates the functionality of the turnover system of such securities. It is deployed on the basis of Rosreestr. The institute stressed that it was possible to significantly simplify the process of registration and maintenance of electronic mortgages. At the same time, registrars, banks and depositories work with securities in the conditions of the most prompt exchange of information.^[1]

Bank "Дом.РФ" carried out the first transaction on the purchase of housing in a new building with the registration of an e-mortgage

Bank "Дом.РФ" conducted the first mortgage transaction for the purchase of an apartment at the stage constructions with the simultaneous registration of an electronic mortgage. The E-mortgage was signed by the borrower digitally signed and transferred online Federal Registration Service to together with documents for registering an equity participation agreement (DDU construction). This was TAdviser announced on December 22, 2022 by representatives of bank Дом.РФ.

Illustration: pr-flat.ru

According to them, the execution of the e-mortgage also allowed the client to receive an additional discount to the interest rate in the amount of 0.2 percentage points.

"Registration of electronic mortgages when issuing loans for new buildings will allow us to increase the turnover of mortgage transactions, that is, to issue more new loans. This also saves time for all participants in the process and reduces bank costs, due to this we improve the quality of customer service and credit conditions. The bank intends to scale this practice in the coming 2023, "said Alexey Kosyakov, Deputy Chairman of the Board of Дом.РФ Bank.

Another advantage of the e-mortgage with the pledge of rights under the DDU in "Дом.РФ" was called the possibility of securitization (raising funds through the issuance of securities) before the completion of the construction of an apartment building. This allows the bank to quickly attract financial resources to issue new home loans.

Earlier, on loans in the primary market, e-mortgages were issued only after the completion of the construction of the mortgage collateral. This was due to the fact that in the case of a digital document when issuing a loan, the bank and the borrower had to make an assessment report twice and transfer the documents to Rosreestr - both at the stage of registration of the DDU and after the completion of housing construction. Since 2023, legislative changes will come into force, thanks to which banks will be able to make changes to the electronic mortgage issued with the pledge of housing under construction without the participation of the borrower and re-assessment of real estate, indicating the parameters of the built apartment in it.

The first notarial transaction with an electronic mortgage was registered in Russia

In Russia, with the participation of ДОМ.РФ, the first notary transaction with the execution of an electronic mortgage took place. This was announced on December 16, 2022 by representatives of the ДОМ.РФ. More details here.

2021: Sber, with the support of Дом.РФ, switched to electronic mortgages throughout the territorial network

All branches of the territorial network of Sberbank have been transferred to the production of electronic mortgages. The bank announced this on August 27, 2021. The technology introduced in the framework of joint work with ДОМ.РФ and Rosreestr simplifies the support of loans, including the removal of encumbrance and securitization, thereby contributing to the development of the mortgage market. Read more here.

2020: Sberbank began issuing electronic mortgages at Masterchain

On July 28, 2020, Sberbank announced the start of using the national blockchain platform Masterchain to record electronic mortgages for real estate transactions. The system was put into commercial operation in the second half of the year, Anatoly Popov, deputy chairman of the board of Sberbank, told reporters through the press service. Read more here.

2018: First mortgage deals using electronic mortgages

In August 2018, Rosreestr registered the first electronic mortgage mortgage of Sberbank. It was registered for a finished apartment purchased on a Sberbank mortgage by a resident of the village of Moscow, Tyumen Region, Sberbank said.

Thanks to the development of electronic interaction with Rosreestr and integration with its services, Sberbank was one of the first to connect to this digital project. Registration of an electronic mortgage will reduce the time for obtaining a mortgage and increase the security of real estate transactions, - noted in the DomClick division of Sberbank.

Sberbank notes that the registration of an electronic mortgage will reduce the timing of the mortgage and increase the security of real estate transactions "(photo - Construction. RU)"

In the same month, the group of companies A101"" (part of the industrial and financial group) "Safmar" Mikhail Gutseriev announced that it had become a member of the full cycle of registration, registration, storage and accounting in the depository of an electronic mortgage mortgage held by "ДОМ.РФ" Rosreestr. The Group entered into the first transaction on the Moscow market to sell an apartment using an electronic mortgage.

The mortgage was issued by Russian Capital Bank, 100% owned by ДОМ.РФ, in which the borrower received a mortgage loan for the purchase of an apartment. The mortgage was sent electronically to Rosreestr, and after registering the mortgage, it was transferred for storage to the depository of Russian Capital Bank through a system of interdepartmental electronic interaction.

2017: Putin signs law on mortgage electronic mortgages

In November 2017, President Vladimir Putin signed a federal law on the circulation of electronic mortgages in the field of mortgage lending after its approval by the State Duma.

The document was initiated by the Government of the Russian Federation and adopted in the first reading in 2014. The amendments of the government adopted in the second reading of the document provide for improving the interaction of the registration authority with the depository. Legislative regulation of the procedure for drawing up, issuing and subsequent circulation of electronic mortgages is provided. It is proposed to establish that an electronic mortgage is drawn up by filling out a mortgage form in electronic form, including one posted on the portal of state and municipal services^[2].

What is an electronic mortgage mortgage

A mortgage mortgage is a security. It confirms the right of the pledgee to receive execution on cash payments secured by a mortgage loan. When buying, for example, a mortgage apartment, the mortgage is in the bank and there is an encumbrance on the certificate of ownership - a mortgage. When the debt is paid, the mortgage encumbrance is removed to close. Thus, this security is a guarantee of the interests of a financial institution.

Such a mortgage is drawn up by filling out a special electronic form on the portal of public services or Rosreestr. The document is signed by the electronic signature of the pledger (and the debtor) and sent to Rosreestr, where it is certified by the signature of the state registrar. Then the document is transferred to the depository for storage. Data on the electronic mortgage are entered into the registration record of the mortgage.

Electronic Embedded Requirements

In accordance with Russian law, an electronic mortgage shall contain:

• the word "embedded" in the title of the document;

• the name of the pledgee, the original pledgee, the debtor (if the debtor is not the pledgee) and information about the identity documents, or the name and indication of the location, if the pledgee/original pledgee/debtor is a legal entity;

• the name of the loan agreement or other obligation, the fulfillment of which is ensured by the mortgage, indicating the date and place of conclusion or the basis for the obligation;

• specifying the amount of the obligation, as well as the amount of interest or conditions for determining them, and the period of payment;

• the name and description of the property on which the mortgage is installed, indicating its location;

• a monetary assessment of the mortgage subject certified by the appraiser;

• the name of the right by virtue of which the property belongs to the mortgagor and the registration authority indicating the number, date and place of state registration, and if the subject of the mortgage is the right of lease belonging to the mortgagor - the exact name of the property that is the subject of the lease;

• an indication that the property subject to the mortgage is encumbered or unencumbered by the right of third parties;

• information on state registration of mortgages;

• number of the deposit account of the original owner of the electronic mortgage or other person exercising the right to the electronic mortgage;

• number of the nominal holder's depot account (if any);

• the name of the depository to which the electronic mortgage is transferred for storage;

• e-mail address of the depository;

• other information necessary for crediting the electronic mortgage to the specified accounts in the depot.