Amanzhayev D. G.
Institute of Management and Finance at
Kyiv National Taras Shevchenko University
graduate student of "Finance and Credit"
01001, Ukraine, Kyiv, str. University, b.39, f.616

CLASSIC MODELS OF MORTGAGE LENDING

With the development of financial instruments, mortgage lending has become an integral part of socio-economic development.

There are two main systems of mortgage regulation: continental European and Anglo-American.

At this time in the world were formed following the classic model of mortgage lending [1, p. 91]:

1. Truncated-open (England, Denmark, Spain).

2. Balanced-autonomous (Germany).

3. Extended-opened (U.S.).

The most simple system of mortgage lending should be considered open-truncated model (Fig. 1). Providing long-term loans to the population, the bank in this model draws resources from various sources, including interbank loans, targeted credit lines, accounts and customer deposits, debt securities and funds from the sale of mortgage securities.

Fig. 1. Truncated open-circuit model of mortgage lending [1, c. 92]

The disadvantages of this model include: dependency model of market-level interest rates, lack of solid standards for mortgage lending, a limited number attractive credit.

Balanced-autonomous or savings and loan model (Fig. 2) mortgage lending - a balanced, autonomous model of mortgage-based savings and loan principle of operation of the type "budoschadkas."

Building societies office being closed financial structure begins its activity with the formation of capital and is based on his own source of funds for lending. All cash funds (own and involved) are used only for conducting statutory activities, that is going to finance housing construction and the issuance of mortgage loans [2, p. 30].

Fig. 2. Scheme of balanced-autonomous model of mortgage lending

Extended-open model (Fig. 3) involves the use of two-tier market model. Bank issues a mortgage borrower in exchange for a commitment for a certain period of monthly transfer to the bank a fixed amount.

Fig. 3. Scheme extended-open system of mortgage lending [3, p. 129]

This obligation secured by the mortgage borrower's home, received. Bank sells a loan to one of the mortgage agencies, while also transferring the obligation to provide credit. Agency shall reimburse the bank paid money to the borrower, and bank transfers received from the borrower's monthly payments except their profit (margin) in the agency. The value of monthly payments, that is a bet on which the agency agrees to purchase mortgage loans, the agency sets on the basis of requirements for investors to return financial instruments.

List of sources:

1. Разумова А.В. Анализ моделей ипотечного кредитования, сложившихся в мировой практике, и возможности их применения на ипотечном рынке Украины // Економічний простір. № 20/1, 2008. – С. 90 – 98.

2. Іванілов О.С., Тітенкова М. В. Іпотечне кредитування у країнах Західної Європи, США та України // Фінанси України. – 2007. – №4. – С.28– 35.

3. Susan Hudson-Wilson. Modern real estate portfolio management. – NY: Frank J. Fabozzi Associates New Hope, Pensylvania, 2000, 239 p.

4. The Global Competitiveness Report: 2010-2011, 2009-2010, 2008-2009, 2007-2008. World Economic Forum [электронный ресурс]. Режим доступа: URL: www.weforum.org