AHML - what is it and why was it created?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Housing is always a key issue in the life of almost any family, and sometimes this aspect becomes the cause of many disputes and conflicts. By order of the Government of the Russian Federation, a state organization was established in 1997 to address this issue. And this is AHML, which stands for the Agency for Housing Mortgage Lending. Its purpose is to make the conditions for purchasing housing on credit as comfortable as possible. What exactly the organization does, and what directions its activities have, 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 that cover the interests of the lending population. And financial institutions that issue loans for purchased housing adhere to the specified standards and mortgage programs. The agency, in turn, provides financial support for AHML banks.

What programs are providedmortgage?

Due to the fact that the federal organization is faced with the task of covering the interests of mortgage borrowers as much as possible, the following AHML mortgage programs were developed:

• "Standard mortgage loan". The borrower is offered a choice of buying a new apartment, house or housing on the secondary market.
• "Variable rate". The loan interest rate 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 an amount of up to 2 million rubles, regardless of the citizen's income.
• Construction companies of state and social housing projects take part in the "Novostroika" program.
• "Low-rise housing" - a loan issued for the construction of low-rise buildings.
• "Secure housing" is the purchase of real estate that is on the balance sheet of AHML.

For young families with minor children (2 or more), additional loan discounts are provided. The list of mortgage lending for AHML banks can be viewed on the official website of the state organization. The conditions and requirements of each of the programs are also described in detail.

Tracking agency financial risks

AHML is not only a support for housing lending in our country, but also a body aimed at tracking financial risksin this area of lending. For example, a state-owned company came up with an initiative to insure unprofitable credit transactions with collateralized real estate. This not only allowed the bank to provide financial support, but also provided an opportunity for borrowers to have low rates, as well as secure the purchase of mortgaged real estate for new buyers.

Internal working mechanism of a mortgage company

When issuing a loan, the lender pays money for the purchase of real estate from its own financial balance and bears all obligations to perform its actions, according to the loan agreement. All debt repayment relationships are borne by the borrower to the bank. AHML, in turn, pays the bank a commission for issuing a loan and its further servicing.

In addition, the Agency redeems the rights to the issued loan from the creditor, removing from the latter litigation to collect debts. And the organization accepts the received interest as income.

In the case of problem debt, the borrower will be liable to AHML, 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 that issued the loan, and not AHML.

Subsidiary of AHML

The deterioration of the financial condition of borrowers is not uncommon in lending. Therefore, another program to help AHML borrowers is restructuring. In 2008, a subsidiary organization appeared -ARIZhK (an agency for the restructuring of mortgage housing loans). ARIZhK significantly unloaded AHML, which allows it to provide quality assistance and advisory work to the population of our country.

What steps should a borrower follow 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. This is also an opportunity to get acquainted with real estate objects and find out the conditions for home insurance and he alth, life of the person being lent.

For more information about the AHML program to help mortgage citizens, you can say this:

• this is an opportunity to choose a convenient program;
• choose a loyal (to the borrower) partner bank;
• explore insurance programs with partners of insurance companies;
• get acquainted with the list of finished residential properties.

If you are already a client of a mortgage agency, then a subsidiary company can provide you with qualified financial support for loan restructuring.

Conditions of real estate and life insurance of the borrower

When making a loan transaction, it is important to know that any property purchased on credit is not only collateral until it is fully repaid, but is also subject to mandatory 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 protectiontransaction, AHML provides for a rate increase of 0.7%. What can be a much more impressive amount for the entire period of the mortgage than the insurance itself.

The reasons lie in the following: 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 a person's he alth 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 a competitive, low interest rate on a loan. As well as the availability of several programs that meet the needs of many segments of the population.

Of the minuses, it should be noted the lengthy consideration of customer applications for a mortgage loan, which can even be calculated for months. Therefore, the low loan rate acts as a compensating factor in the long wait for a response to the application.

But here it should be noted that AHML works as an intermediary between the lender and the potential borrower. Only in disputable and conflict situations can the state structure resolve the issue. And if necessary, you can always count on advice from AHML or ARIZHK.

Reviews about AHML

Like everything state-owned, with an attractive opportunity to receive services or real estate, the process is not simple and not always easy. Low loan rates hide a huge amount of documents and a long waiting time for a responseto a loan request.

Of course, there are a lot of people who want to get housing at affordable prices and loan rates. It also takes into account the fact that there are many programs to help AHML borrowers.

In the opinion of potential or real clients, financial relationships in the "AHML - Borrower - Bank" system are complex and not always clear. After all, AHML has the right to repurchase mortgages. And this means that in difficult situations, it is not so easy for an ordinary person to look for "ends".

Procrastination is often spoken about, which negatively affects the work of the Federal Agency as a whole. In fact, in order to avoid a negative experience with this organization, it is necessary to carefully study the requirements for the borrower and his documents, which, according to AHML, are detailed on the official website.

You also need to be prepared for a long wait at your request. According to official data, the maximum waiting period is no more than 30 days. But, as evidenced by the reviews of people who have encountered AHML, the time can be significantly delayed (perhaps up to six months).

In addition to the above, there are rules for each program, deviation from which is the reason for the refusal of the possibility of lending under the program. Therefore, only your attentiveness and perseverance can help in such a difficult matter as the correct mortgage lending at low rates.