Amanzhayev D. G.
Institute of Management and Finance at
Kyiv National Taras Shevchenko University,
graduate
student of "Finance and Credit"
Principles
of Mortgage Lending
Mortgage loan -
this is the same bank (credit) mortgage, you need to consider more money for
the relationship, not about real estate. This residential mortgage - a mortgage
loan issued for the purposes of purchase, construction or upgrade (repair) of
residential real estate destination. Relations in mortgage lending based on the
principles that share the general characteristic of all forms of loan
(maturity, return, payment, security, purpose), and special inherent in the
mortgage loan as a special category (Fig. 1).
The special principles mortgage O.
Lavrushyn include the following [2, p. 45]:
- provision of
credit secured by real estate;
- determination of
the loan as part of the value of mortgaged real estate;
- saving of
borrower ownership and use of mortgaged real estate;
- insurance risk
mortgage lending.
Thus, the general and special
principles are the people – fundamental mortgage features, regarded as its
essential features, since in the absence of at least one of them a mortgage
loan as a separate economic category ceases to exist.
Specific mortgage credit relations creates
certain advantages secured by the real estate lending are both borrower and lender for. The main
advantage of mortgage for borrowers is a growth investment opportunities by
converting real estate on operating capital, functioning
of the mortgaged property for its intended purpose, stability in nominal
terms throughout the period of the loan, reducing the amount of monthly,
quarterly, annual payment through long-term mortgage credit.
For lender
mortgages are attractive because of stable income, relatively low risk for
loans secured by real estate, providing a stable customer base and long-term
cooperation. Given the economic importance of mortgage O.
Evtukh offers complete classification principles mortgage principle of
sociality and yield [1, p. 51].
Fig. 1.
The principles of mortgage lending [48, p. 20]
Mortgage
loans sold during the agreement on a mortgage loan subject to the requirements
established by law. Creditor to contract for a mortgage loan shall
disclose the basic economic and legal requirements for a loan.
So, analysis of
scientific literature on the definitions the term "mortgage" allows
us to give a modern definition of "mortgage" as an economic and legal
institution [3, c. p. 14]. Mortgage can be defined as both of connected to
each other category. First, a monetary obligation secured by collateral real
estate, land, certain items of movable property, property rights, issuing
mortgage securities and other mortgage debt. Second, this collateral. Thirdly,
a mortgage loan.
List of sources:
1. Євтух О. Житлова
іпотека: фінансово-економічний аспект // Вісник НБУ. – 2000. – №4. – с. 51-52.
2. Лаврушин О. И. Банковское
дело: современная система кредитования : учеб. пособие для студ., обуч. по
спец. "Финансы и кредит" / О. И. Лаврушин [и др.] ; Финансовая академия при Правительстве
Российской Федерации. - М. : Кнорус, 2007. - 260 с.
3. Susan Hudson-Wilson. Modern
real estate portfolio management. – NY: Frank J. Fabozzi Associates New Hope,
Pensylvania, 2000, 239 p.