Housing is always a key issue in the life of almost any family, and sometimes this aspect also causes many disputes and conflicts. By order of the Government of the Russian Federation in 1997, a state organization was created to address this issue. And this is AHML, which stands for Agency for Housing Mortgage Lending. Its purpose is to make the conditions for acquiring housing on credit as comfortable as possible. What exactly the organization does, and what areas its activities are, you will learn further from the article.
Agency lending standards
AHML is not just an organization that regulates mortgage lending with a certain number of banks. This agency has developed certain criteria covering the interests of the credited population. And financial institutions that issue loans for purchased housing adhere to specified standards and mortgage programs. The agency, in turn, provides financial support for AHML banks.
What programs are provided for a mortgage?
Due to the fact that the federal organization is faced with the task of maximizing the interests of mortgage borrowers, the following AHML mortgage programs have been developed:
- "Standard mortgage loan." The borrower is offered the choice of buying a new apartment, house or housing in the secondary market.
- "Variable Rate". The loan interest rate on a loan may vary depending on the refinancing rate of the Central Bank of the Russian Federation.
- "Maternity capital" - using the appropriate certificate.
- "Military mortgage" - affordable ready-made housing for military personnel, with the possibility of obtaining amounts of up to 2 million rubles, regardless of the income of a citizen.
- The program "New building" involved construction companies of state and social housing projects.
- "Low-rise housing" - a loan is issued for the construction of low-rise buildings.
- “Collateral Housing” is the acquisition of real estate on the balance sheet of AHML.
For young families with minor children (2 or more), additional discounts on loans are provided. The list of mortgage lending by AHML banks can be viewed on the official website of the state organization. The conditions and requirements of each program are also described in detail there.
Agency financial risk tracking
AHML is not only support for housing lending in our country, but also a body aimed at tracking financial risks in this area of lending. For example, a state-owned company took the initiative to insure unprofitable credit transactions with collateral real estate. This not only made it possible to provide financial support to the bank, but also provided an opportunity for borrowers to have low rates, as well as to secure the purchase of collateral real estate for new buyers.
The internal mechanism of the mortgage company
When issuing a loan, the lender pays the funds for the purchase of real estate from his own financial balance and bears all obligations for the execution of his actions, according to the loan agreement. The borrower bears all the relationships for the payment of debt to the bank. AHML, in turn, pays the bank a commission for granting a loan and its further servicing.
In addition, the Agency buys from the lender the right to a loan, removing from the last debt collection lawsuit. And the organization accepts the interest received as income.
In case of bad debt, the borrower will be liable to AHML, and not to the bank. But if we are talking about simple overdue debt, then in this case the lender is obliged to independently deal with this issue, since it is the bank - the financial organization that issued the loan, and not the AHML.
Subsidiary company AHML
Deterioration in the financial condition of borrowers is not uncommon in lending. Therefore, another program of assistance to AHML borrowers is restructuring. In 2008, a subsidiary appeared - ARIZHK (Agency for the Restructuring of Mortgage Housing Loans). ARIZhK significantly unloaded AHML, which allows us to provide quality assistance and advisory work to the population of our country.
What steps should be taken from the borrower when choosing a mortgage agency?
As we already know, AHML is not just an organization that regulates financial and housing relations between a lender and a buyer. It is also an opportunity to get acquainted with real estate and find out the conditions of home insurance and health, life of the loaned person.
In more detail about the program of AHML in helping mortgage citizens, you can say this:
- this is an opportunity to choose a convenient program;
- opt for a loyal (borrower) partner bank;
- study insurance programs with partners of insurance companies;
- get acquainted with the list of finished residential objects.
If you are already a client of a mortgage agency, a subsidiary can provide you with qualified financial support for loan restructuring.
Conditions of insurance of real estate and life of the borrower
When registering a loan transaction, it is important to know that any property purchased on credit is not only collateral until it is fully repaid, but also subject to compulsory insurance in case of complete loss or damage.
Life insurance under the law of the Russian Federation is not a mandatory type of insurance. But in case of refusal of this type of credit transaction protection, AHML provides for a rate increase of 0.7%. What could be a much more impressive amount for the entire mortgage period than the insurance itself.
The reasons are as follows: the term for obtaining a mortgage can reach up to 30 years - and this is a serious time period, where it is not possible to predict what will happen to human health and life. This increases financial risks and, as a result, interest rates.
Advantages and Disadvantages of Federal Agency Programs
The main advantage of AHML is the competitive, low interest rate on the loan. As well as the presence of several programs that satisfy the needs of many segments of the population.
Of the minuses, it should be noted the lengthy consideration of the client's application for a mortgage loan, which can be calculated even for months. Therefore, a low loan rate acts as a compensating factor in the long wait for a response on the application.
But it should be noted here that AHML works as an intermediary between the lender and the potential borrower. Only in controversial and conflict situations can the state structure resolve the issue. And if necessary, you can always count on a consultation from AHML or AHML.
Reviews about AHML
Like everything public, with an attractive opportunity to receive services or real estate, the process is not simple and not always easy. A low amount of documents hides a huge amount of documents and a long waiting time for a response to a loan request.
Of course, there are a lot of people who want to get housing at affordable prices and credit rates. The fact that there are many programs to help AHML borrowers is also taken into account.
According to potential or real customers, the financial relationships in the AHML - borrower - bank system are complex and not always clear. Indeed, AHML has the right to repurchase mortgages. And this means that in difficult situations, finding the "ends" for a simple person is not so simple.
They often talk about delays, which negatively affects the work of the Federal Agency as a whole. In fact, in order to avoid negative experience with this organization, it is necessary to carefully study the requirements for the borrower and his documents, which, according to AHML, are described in detail on the official website.
You also need to be prepared for a long wait on your request. According to official figures, the maximum waiting period is no more than 30 days. But, as evidenced by the reviews of people who have encountered AHML, time can significantly drag out (possibly up to six months).
In addition to the above, there are norms for each program, deviations from which are the reason for refusing the possibility of lending under the program. Therefore, only your attentiveness and perseverance can help in such a difficult matter as the right mortgage lending at low rates.