Analysis of the residential mortgage market in the Ural Federal District

Ekaterina G. Zinovyeva, Natalya R. Balynskaya, Svetlana V. Koptyakova, Oksana O. Akhmetzianova

Abstract


The relevance of this study stems from the fact that it analyzes the current situation on the mortgage market in Russia: the influence of macro-economic factors causes a fall in collateral value, dramatic increase in mortgage default and poor performance of the Agency for Housing Mortgage Lending (AHML).
The study is aimed at investigating the current state of residential mortgage lending on the regional level in Russia by focusing on the case of the Ural Federal District. The study considers the interests of all the participants of this market: individual borrowers, state authorities, financial and credit institutions engaged in mortgage lending.
The study analyzes statistical data on the primary residential mortgage market in the Ural Federal District provided by the Central Bank of the Russian Federation, Federal State Statistics Service and the AHML.
Results. Modern approaches to mortgage system evaluation are compared in order to identify and systematize the key criteria and statistical indicators characterizing the current state of this form of lending relationships. The analysis also brings to light the negative trends in mortgage lending in the Ural Federal District.
As a part of our further research, we are going to develop a procedure for evaluating the performance of a mortgage system.


Keywords


residential mortgage, primary mortgage market, lenders, balanced autonomy model, single-tier and two-tiered models, mortgage institutions, lending market

Full Text:

PDF

References


Zinovieva, E.G., Vasilieva, A.G., & Usmanova, E.G. (2018). Contemporary issues and trends in the development of the Russian national mortgage system. St Petersburg: Info-Da. (In Russ.)

Minz, V.M. (2012). Models of mortgage lending and prospects of their application in Russia. Bankovskoye delo, 6, 30–34. (In Russ.)

Pavlova, I.V. (2016). Foreign experience of mortgage lending and its applicability in Russia. Bankovskoye delo, 4, 13–19. (In Russ.)

Merkulov, V.V. (2013). International experience of mortgage lending and prospects of its use in Russia. St Petersburg: Piter. (In Russ.)

Khusikhanov, R.U. (2014). Mortgage Market Imbalances and their Influence on the Stability of the Global Financial System. Novy vzglyad. International Academic Journal, 3, 297–306. (In Russ.)

Khusikhanov, R.U. (2014). Features of models of mortgage lending in the developed foreign countries. Vestnik Universiteta, 6, 164–167. (In Russ.)

Karimov, B.N. (2017). Mortgage lending in Russia and enhancement of its efficiency. Ekonomika i predprinimatelstvo = Journal of Economy and Entrepreneurship, 1, 12–20. (In Russ.)

Zinovieva, E., Kuznetsova, M., Ivashina, N., Votchel, L., & Vikulina, V. (2018). Development of an integrated approach to the assessment of efficiency of functioning of the mortgage lending system in the Russian Federation. In: Challenging the Status Quo in Management and Economics. Strategica International Academic Conference. Bucharest, Romania, October 11–12, Sixth Edition (pp. 283–293).

Torluccio, G., & Dorakh, A. (2011). Housing affordability and methodological principles: an application. International Research Journal of Finance and Economics, 79, 64–78. Available at: https://ssrn.com/abstract=2005895.

Diaz-Serrano, L. (2005). Income volatility and residential mortgage delinquency across the EU. Journal of Housing Economics, 14(3), 153–177. doi: 10.1016/j.jhe.2005.07.003.

Kim, J. (2020). How Unsecured Credit Policies Influence Mortgage and Unsecured Loan Defaults. Journal of Money Credit and Banking. doi: 10.1111/jmcb.12620.

Gary-Bobo, R.J., & Larribeau, S. (2004). A structural econometric model of price discrimination in the French mortgage lending industry. International Journal of Industrial Organization, 22(1), 101–134. doi: 10.1016/j.ijindorg.2003.07.002.

Diaz-Serrano, L., & Raya, J.M. (2014). Mortgages, immigrants and discrimination: An analysis of the interest rates in Spain. Regional Science and Urban Economics, 45, 22–32. doi: 10.1016/j.regsciurbeco.2013.12.004.

Kau, J.B., Fang, Lu, & Munneke, H.J. (2019). An Unintended Consequence of Mortgage Financing Regulation – a Racial Disparity. Journal of Real Estate Finance and Economics, 59, 549–588. doi: 10.1007/s11146-018-9683-y.

Becker, R., Osbom, D.R., & Yildirim, D. (2012). A threshold cointegration analysis of interest rate pass-through to UK mortgage rates. Economic Modelling, 29(6), 2504–2513. doi: 10.1016/j.econmod.2012.08.004.

Courchane, M.J., Darolia, R., & Zom, P.M. (2014). The downs and ups of FHA lending: The government mortgage roller coaster ride. Journal of Housing Economics, 24, 39–56. doi: 10.1016/j.jhe.2014.01.002.

Avdjiev, S., & Hale, G. (2019). U.S. monetary policy and fluctuations of international bank lending. Journal of International Money and Finance, 95, 251–268. doi: 10.1016/j.jimonfin.2018.06.013.

Chen, N.-K., Chen, S.-S., & Chou, Y.-H. (2010). House prices, collateral constraint, and the asymmetric effect on consumption. Journal of Housing Economics, 19(1), 26–37. doi: 10.1016/j.jhe.2009.10.003.

Klevtsov, V.V. (2017). Cooperative Building in the System of Residential Mortgage Lending. Ekonomika, 1, 18–24. (In Russ.)

Mamonov, M., & Vernikov, A. (2017). Bank ownership and cost efficiency: new empirical evidence from Russia. Economic Systems, 41(2), 305–319. doi: 10.1016/j.ecosys.2016.08.001.

Zinovieva, E.G., & Usmanova, E.G. (2017). The analysis of effectiveness of the primary market of mortgage loan system functioning under the Russian Federation conditions. Ekonomika i politika = Economics and Politics, 2, 13–20. (In Russ.)

Zinovieva, E.G., & Kuznetsova, M.V. (2017). Evaluation of the effectiveness of the primary mortgage market in the regional context. Ekonomika i predprinimatelstvo = Journal of Economy and Entrepreneurship, 12-1, 222–227. (In Russ.)

Wood, J.D.G. (2019). Mortgage Credit: Denmark’s Financial Capacity Building Regime. New Political Economy, 24(6), 833–850. doi: 10.1080/13563467.2018.1545755.

Zinovieva, E.G., Koptyakova, S.V., & Usmanova, E.G. (2019). Complex approach to the estimation of the efficiency of functioning of the mortgage loaning system in the Russian Federation. Menedzhment v Rossii i za rubezhom = Management in Russia and Abroad, 2, 54–62. (In Russ.)

Yanova, S.Y., & Popova, E.M. (2018). Monetary policy: result or momentum economic development. Izvestiya Sankt-Peterburgskogo gosudarstvennogo ekonomicheskogo universiteta, 5, 54–63. (In Russ.) Available at: https://elibrary.ru/item.asp?id=36334806.




DOI: https://doi.org/10.15826/recon.2020.6.1.001

Copyright (c) 2020 Ekaterina G. Zinovyeva, Natalya R. Balynskaya, Svetlana V. Koptyakova, Oksana O. Akhmetzianova

Сertificate of registration media Эл № ФС77-80764 от 23.04.2021
Online ISSN 2412-0731