Mortgage-backed securities include mortgage notes, mortgage-backed bonds, and mortgage participation certificates.

Mortgage

A mortgage is a registered security that certifies the right of its legal owner to receive performance of an obligation secured by the mortgage real estate. The purpose of this paper is to accelerate the turnover of mortgaged real estate in order to expand the mortgagee's ability to quickly satisfy their claims. The transfer of rights under a mortgage by the mortgagee is carried out on the basis of assignment (assignment of rights of claim). The presence of this paper does not exclude the need to conclude a mortgage agreement, the terms of which must provide for the issuance of a mortgage to the mortgagee. However, the mortgage is given priority over the contract, so if there is a discrepancy between the contents of the contract, the contents of the mortgage must be followed.

Unlike most other securities (such as promissory notes, warrants, etc.), the contents of the mortgage may be changed or the mortgage may be replaced; this right is given to the debtor under the obligation secured by the mortgage, the mortgagor and the legal owner of the mortgage. Any changes or replacements are made only on the basis of an agreement between the specified parties. Replacement or modification of a mortgage is usually practiced in the case of private execution of the main obligation.

The mortgage is invalidated in judicial procedure in two cases Ї in case of violation of the procedure for its issuance or in connection with its loss by the legal owner, and the fact of loss is necessarily confirmed by the issuance of a duplicate of the mortgage to the mortgagee. Duplicate The mortgage is issued by the body that carried out the state registration of the mortgage.

Mortgage-backed bonds

A mortgage-backed bond is a security the fulfillment of obligations under which is secured in whole or in part by the mortgage security. This paper is issued in both documentary and non-documentary forms. Mostly housing bonds are traded on the market, that is, they have covered claims secured by the mortgage of residential premises. At the same time, housing bonds cannot be secured by collateral of real estate, the construction of which is not completed.

Thus, a distinctive feature of bonds as a type of mortgage-backed securities is the fact that the fulfillment of obligations under such a bond is ensured collateral mortgage coverage (instead of a real estate pledge), and this coverage in most cases is made up of claims secured by a mortgage.

From this it follows, in particular, that in order to confirm the secured requirement included in the mortgage coverage mortgage the presence of a mortgage is sufficient for the obligation. Therefore, in the event of a violation of the obligations that arise from such bonds (say, when the bank issuing mortgage bonds refused to pay on them), the owner of these securities has the right to reverse collection on mortgage coverage, which is the subject of collateral. Meanwhile, the mortgagor (the owner of the residential premises) is liable for failure to fulfill only his obligation arising from the loan agreement secured by the mortgage of the residential premises.

The amount of liabilities for all outstanding mortgage-backed bonds should not exceed the amount of the mortgage coverage, which serves as an essential condition for protecting the rights of the owners of these bonds. At the same time, the amount of mortgage-backed claims included in the mortgage coverage of the bonds should not be less than 80% of the nominal value of the issued bonds. At the same time, the principal amount of claims under a loan agreement or credit agreement secured by a mortgage or pledge must not exceed 80% of the market value of the real estate constituting the subject of the mortgage and assessed by an independent appraiser.

Emission Mortgage-backed bonds can be carried out exclusively by credit institutions and mortgage agents, whose role is played by specialized commercial organizations ( joint stock companies), whose main activity is the acquisition of claims and the issuance of mortgage bonds. In the latter case, the bank that provided the mortgage loan assigns the rights of claims arising from the loan agreement to mortgage agents, which is also considered as a direction for refinancing mortgage capital, since this capital is replenished in the shortest possible time due to the rapid return of mortgage loan amounts (except for the interest specified in agreement between the bank and the mortgage agent).

Mortgage participation certificates

A mortgage participation certificate is a registered security without nominal value, certifying its owner’s share in the right of common ownership of the mortgage coverage, as well as the right to demand from the person who issued it proper trust management of the mortgage coverage and other rights provided for by law and close to the rights of the owner investment share. Mortgage participation certificates thus act as an exchange instrument when a credit institution transfers the rights of claim arising from loan agreements into trust management of the management company.

Only a commercial organization (joint stock company) that has a license to carry out activities related to the management of investment funds, mutual funds and non-state pension funds. Management of the property complex constituting the mortgage coverage is carried out in the interests of the owners of mortgage participation certificates.

A credit institution that becomes the owner of a mortgage participation certificate acquires common shared ownership of the mortgage coverage located in trust management. This share includes a pool of property and liability rights, which consists of monetary claims, financial assets, securities and real estate. Possession, storage and accounting of the components of mortgage coverage are carried out in accordance with the competence of the manager and specialized depositary. The first (manager) owns, uses and disposes of the mortgage coverage in the interests of the owners of mortgage participation certificates. The second (depository) exercises control over the activities of the manager by maintaining a register of mortgage coverage.

After studying this chapter, you will learn:

• ? what are mortgage-backed securities and what are their types;
• ? how the mortgage-backed securities market is related to the mortgage loan market;
• ? what models of mortgage loan markets have emerged in global practice and what is their impact on the mortgage securities markets;
• ? what stage is the Russian mortgage securities market at, what are its problems and development trends.

The concept of mortgage-backed securities and their types

The name “mortgage securities” indicates that they are associated with a mortgage - the collateral of real estate. The term “mortgage” appeared in ancient times (Greece, 6th century BC).

Mortgage(hypotheka) - ensuring the liability of the debtor to the creditor with certain land holdings.

In Russia, these relations are regulated by two laws (as amended): dated July 16, 1998 No. 102-FZ “On mortgage (real estate pledge)” and dated November 11, 2003 No. 152-FZ “On mortgage-backed securities” (latest edition) (hereinafter - Mortgage Securities Act).

Mortgage- this is one of the forms of pledge in which the pledged real estate remains in the possession of the debtor, and the creditor, in the event of the latter’s failure to fulfill his obligation, acquires the right to receive satisfaction through the sale of this property.

Most often, a pledge of real estate arises in mortgage lending, when a bank issues a loan secured by the acquired real estate, which becomes the subject of pledge. Another case of a mortgage is obtaining a loan or a loan secured by existing real estate for some other purpose of the borrower, not necessarily related to this real estate.

The debtor under a credit (loan) secured by a mortgage owns and uses his property, but can dispose of (sell, pledge) it only with the consent of the creditor (bank). When the debtor is unable to fulfill his obligations, the property is sold at auction, the creditor's claims are satisfied from the funds received, and the remaining money is returned to the debtor. Thus, a mortgage acts as a way to secure the debtor’s obligations and reduces the risks of the creditor bank (Fig. 10.1). Additional protection for the creditor is insurance of both the pledged property itself and the life and health of the debtor.

Rice. 10.1.

Mortgage-backed securities- debt securities that are refinanced using the obligations of one or more mortgage loans. Interest and principal payments on such securities are made from funds received under secured loans.

When issuing a loan secured by real estate, a loan agreement is drawn up, which defines the relationship between the debtor and the creditor, the procedure for issuing and repaying the loan, as well as a pledge agreement, which defines the relationship between the mortgagor and the mortgagee, the procedure for using the collateral, its liquidation (sale) in the event of failure to fulfill obligations under loan agreement.

Mortgage- this is a registered security that certifies the rights of its legal owner to receive fulfillment of monetary obligations secured by a mortgage, without providing other evidence of the existence of these obligations and the right of pledge on property encumbered with a mortgage.

For example, a bank that issues a mortgage loan acts as a lender for the obligation secured by the mortgage (under a loan agreement) and as a mortgagee of the mortgaged real estate. The rights of this bank as a mortgagee may also be additionally secured by a mortgage.

Why do you need a mortgage if all the rights of the lender and the mortgagee are specified in the relevant agreements? A mortgage is a security that can be traded on the market; therefore, it allows the creditor bank to transfer, assign its rights to another person by simply transferring (selling) the mortgage to that person.

The obligors under the mortgage are the debtor for the obligation secured by the mortgage and the mortgagor. Often this is the same person, but not necessarily. The mortgage must have all the required details, including containing all the essential terms of the agreements - the loan agreement and the collateral agreement, so sometimes the mortgage is a whole “book”. Since all rights associated with real estate are subject to state registration, the issuance of a mortgage to its first holder is carried out by the body that carried out such registration of the rights of the mortgagee. In the future, the owner of the mortgage can transfer it to another person, and such a transaction is made in simple written form. The transfer of rights to a mortgage to another person means the transfer thereby to that person of all the rights certified by it in the aggregate, i.e., both the rights of the creditor and the rights of the mortgagee.

Properties of the mortgage:

• ? expresses the relationship of debt. However, if the owner of the mortgage fails to repay the debt, he can receive satisfaction of his claims from the value of the mortgaged property, but not the property itself;
• ? personalized paper. The rights certified by the mortgage belong to the person named in it;
• ? non-issue paper;
• ? documentary paper. When exercising his rights, the owner of the mortgage is obliged to present the mortgage to the person in respect of whom the corresponding right is exercised, at his request, unless when pledging the mortgage it is not transferred to the deposit of a notary;
• ? urgent paper. It has a specific repayment period, and if the amount of the obligation is payable in installments - specific terms (frequency) of payments;
• ? a marketable security (i.e., there may also be a secondary market for mortgages);
• ? interest paper. The mortgage provides for interest payments in excess of the face value, which can be fixed or floating.

Why are mortgages not traded on the market? Several factors prevent this:

• 1) a mortgage is drawn up as a document, an agreement, consisting of many pages and associated with other agreements (loan, life insurance, property insurance, accounts, etc.);
• 2) mortgage amounts are usually not high enough to be attractive to large investors, and small investors prefer other assets that are more understandable and less risky;
• 3) interest rate risk. The interest on the loan is the income on the mortgage, it is fixed, and if rates fluctuate in the market, the mortgage will bear interest rate risk;
• 4) the risk of loss of property value. All mortgages are different, issued for different properties, the value of which fluctuates and may be inflated. If real estate prices fall, some borrowers may refuse to make loan payments and give back the lower-priced mortgaged property. Therefore, the buyer of a mortgage note is reluctant to take the risk of purchasing such paper;
• 5) credit risk. A mortgage is based on a loan made to the borrower. The state of affairs of this borrower is an unclear question for the buyer of the mortgage, and sometimes for the lending bank itself. Therefore, if the borrower’s credit condition deteriorates (dismissal from work, lack of income), repayment of the principal amount of the loan and interest on it becomes an unlikely event.

Thus, purchasing one mortgage is a very risky and expensive undertaking. However, its negotiability makes it possible to design financial products by creating a certain portfolio and combining different assets in it so as to reduce the overall risk while maintaining profitability. At first glance it seems that this is impossible, but if we look at the details, then:

• ? instead of several mortgages for this amount, a certain number of standard securities can be issued, then problems with purchasing a package and the complexity of contracts can be avoided;
• ? The credit, interest and risk of loss of property value when combining several mortgages are reduced, since, for example, when the value of one property is revalued, another may be undervalued, and the refusal of one of 1000 borrowers to make payments will not greatly affect the overall financial result.

Therefore, financial engineers came up with a securitization scheme - turning non-tradable assets into marketable securities.

The negotiability of mortgages as securities allows them to be used as collateral for the issue of other securities - mortgage-backed bonds.

Mortgage-backed bond- a bond, the fulfillment of obligations under which is secured in whole or in part by the mortgage security.

A separate type of such bonds are mortgage-backed housing bonds- mortgage-backed bonds, which include only claims secured by the mortgage of residential premises.

Mortgage-backed bonds can be thought of as secured bonds, but with a specific collateral.

Such bonds are issued for the purpose of refinancing mortgage loans. A bank providing mortgage lending accumulates a pool of mortgages (mortgage coverage), for which it receives regular payments to repay issued loans. The bank can use this pool of mortgages to issue bonds on its behalf, repayment of the principal debt and interest payments will be made from proceeds from the mortgages. The bank may also transfer the pool of mortgages to another entity (mortgage agency), which will issue bonds on its own behalf.

A similar scheme for refinancing mortgage loans is widely used in the USA, where already in the 30s. XX century A system of state support for mortgage lending is beginning to take shape, specialized organizations are being created, including mortgage agencies. In the United States, the mortgage loan market operates on the basis of a well-developed mortgage bond market, which provides refinancing to banks providing mortgage lending.

In Russia, the composition of mortgage coverage is regulated by law.

Mortgage coverage may consist only of claims secured by a mortgage for the return of the principal amount of the debt and (or) for the payment of interest under credit agreements and loan agreements, including those certified by mortgages, and (or) mortgage participation certificates certifying the share of their owners in the right of common ownership of another mortgage coverage, funds in Russian currency or foreign currency, as well as government securities and real estate in cases provided for by law.

In other words, mortgage coverage in Russia may consist of:

• 1) from mortgages;
• 2) mortgage participation certificates;
• 3) government securities;
• 4) cash.

Real estate can be included in the mortgage coverage only in special cases and for a certain period.

Mortgage coverage can be considered as a kind of analogue of a mutual investment fund, the participants of which own a security certifying their rights as “shareholders” of the mortgage coverage.

Mortgage participation certificate- a registered security certifying its owner’s share in the right of common ownership of the mortgage coverage, the right to demand from the person who issued it proper trust management of the mortgage coverage, the right to receive funds received in fulfillment of obligations, the claims for which constitute the mortgage coverage.

Mortgage coverage is in trust, which is carried out either by a management company or a bank.

Mortgage-backed bonds are bonds, securities, the issue of which has features compared to “ordinary” bonds, in particular, only mortgage agents and credit organizations can issue mortgage-backed bonds.

Mortgage agent- this is a joint-stock company, the only object of activity of which can only be the acquisition of claims on credits (loans) secured by mortgages and (or) mortgages.

To do this, the mortgage agent can borrow, including through the issue of mortgage-backed bonds. A mortgage agent cannot have a staff, the powers of the sole executive body of the mortgage agent must be transferred to a commercial organization, and accounting is also transferred to a specialized organization. No changes to the mortgage agent's charter are permitted. After all issues of placed mortgage-backed bonds are repaid, the mortgage agent is liquidated.

The main issuer of mortgage-backed bonds in Russia is the Housing Mortgage Lending Agency, which has established several specialized joint-stock companies - mortgage agents - for this purpose, but the mortgage bond market in Russia is still at the very beginning of its development.

• Galanov V. A., Basova A. I. Securities market. M., 2006.
• Article 17 of the Law on Mortgage (Pledge of Real Estate).

8.3. Mortgage-backed securities

The following types of mortgage-backed securities exist: mortgage-backed bonds and mortgage participation certificates. The essence of mortgage-backed securities is that the institution that has provided a loan secured by a property issues securities backed by mortgages and then sells them to other investors.

A distinctive feature of mortgage-backed securities is a special way of securing them - collateral through mortgage coverage. According to Art. 3 of the Law “On Mortgage Securities”, the main mortgage coverage may only include claims secured by a mortgage for the return of the principal amount of the debt and for the payment of interest under credit agreements and loan agreements, including those certified by mortgages, and/or mortgage participation certificates certifying the share their owners have the right of common ownership of other mortgage coverage, funds in Russian currency or foreign currency, as well as government securities.

The mortgage coverage of mortgage-backed bonds, other than residential mortgage-backed bonds, may include claims secured by real estate that is not yet completed.

Mortgage-backed bond– a bond, the fulfillment of obligations under which is secured by a mortgage.

A type of mortgage-backed bond is mortgage-backed housing bond, the peculiarity of which is that the mortgage coverage includes only claims secured by the mortgage of residential premises.

The main characteristics of mortgage-backed bonds are presented in table. 8.3.1.

Table 8.3.1. Main characteristics of mortgage-backed bonds

The issue of mortgage-backed bonds can only be carried out by mortgage agents and credit institutions.

A mortgage agent is a specialized commercial organization whose exclusive activity is the acquisition of rights of claim under credits (loans) secured by mortgages and/or mortgages and which is granted the right to issue mortgage-backed bonds.

The acquisition of claims can be carried out through a purchase and sale agreement, exchange, assignment (assignment of a claim), other transaction on the alienation of this property, including those related to the payment of the authorized capital (shares) of the mortgage agent with this property, as well as as a result of universal legal succession.

Mortgage-backed bonds secure the right of their owners to receive interest, the amount of which is determined by the decision to issue mortgage-backed bonds of their nominal value. Interest payments on mortgage-backed bonds must be made at least annually.

Mortgage-backed bonds are issued in documentary and non-documentary form. In the documentary form of mortgage-backed bonds, a mandatory requisite of the bond certificate is an indication of the procedure and conditions for paying income to the owners of such a bond, as well as the procedure and conditions for its repayment.

In addition to the above-mentioned property, the mortgage coverage for these bonds may also include government securities and real estate.

The size (amount) of the claims secured by the mortgage, constituting the mortgage coverage of the bonds, cannot be less than 80% of the total nominal value of the bonds.

At the time of submission of documents for state registration of the issue of mortgage-backed bonds, the size (amount) of the mortgage-backed claims constituting the mortgage coverage of such bonds must be no less than their total nominal value and the amount of interest on these bonds.

To ensure complete fulfillment of obligations under mortgage-backed bonds, the amount of mortgage coverage of these bonds on any date before their redemption must be no less than the size (amount) of obligations under these bonds.

Mortgage participation certificate- this is a registered security certifying its owner’s share in the right of common ownership of the mortgage coverage, the right to demand from the person who issued it proper trust management of the mortgage coverage, the right to receive funds received in fulfillment of obligations, the claims for which constitute the mortgage coverage.

The main characteristics of mortgage participation certificates are as follows (Table 8.3.2).

Table 8.3.2. Main characteristics of mortgage participation certificates

A mortgage participation certificate is not an issue-grade security. The issuance of mortgage participation certificates can only be carried out by commercial organizations that have licenses to carry out activities related to the management of investment funds, mutual funds and non-state pension funds, as well as credit organizations. The validity period of the mortgage cover trust management agreement, established by the rules for mortgage cover trust management, should not be less than a year and more than 40 years.

The issuance of mortgage participation certificates is carried out to the person who owns the rights of claim constituting the mortgage coverage.

Each mortgage participation certificate certifies the same amount of rights, including an equal share of the common ownership of the mortgage security.

Rights certified by a mortgage participation certificate are recorded in non-documentary form. Accounting of rights to mortgage participation certificates is carried out on personal accounts in the register of owners of mortgage participation certificates and, if provided for by the rules of trust management of mortgage coverage, in securities accounts by depositories, for which, for these purposes, personal accounts of nominal holders are opened in the register of owners of mortgage participation certificates. Moreover, they, with the exception of depositories that record rights to mortgage participation certificates, the circulation of which is carried out through the organizer of trading on the securities market, do not have the right to open securities accounts for other depositories that perform the functions of nominal holders of securities of their clients (depositors).

The registrar maintaining the register of owners of mortgage participation certificates, at the request of the owner of mortgage participation certificates, his authorized person or nominee holder, is obliged to confirm the rights of these persons to mortgage participation certificates by issuing an extract from the register of owners of mortgage participation certificates within 5 days.

The number of mortgage participation certificates certifying the share in the right of common ownership of the mortgage coverage is indicated in the rules of trust management of this mortgage coverage.

A mortgage participation certificate has no face value.

Mortgage participation certificates are freely circulated, including through trade organizers on the securities market.

Test 1. Choosing the correct answer

1. A bond, the fulfillment of obligations under which is secured by a pledge of mortgage coverage, is:

a) bond;

c) consoles.

2. Mortgage-backed bonds are issued by:

a) mortgage agent and credit institution;

b) an individual;

c) individual and legal entity.

3. According to the form of issue, mortgage-backed bonds are:

a) issue-grade securities;

b) non-issue securities;

c) equity securities.

4. A specialized commercial organization, the exclusive subject of activity of which is the acquisition of rights of claim under credits (loans) secured by mortgages and/or mortgages, and which is granted the right to issue mortgage-backed bonds, is:

a) mortgage agent;

b) financial consultant;

c) depository.

5. Payment of interest on mortgage-backed bonds must be made:

a) at least once a year;

b) once every 3 months;

c) 2 times a year.

6. According to the form of existence, mortgage-backed bonds are:

a) documentary and uncertificated securities;

b) documentary securities;

c) uncertificated securities.

7. The size (amount) of claims secured by a mortgage, constituting the mortgage coverage of bonds, cannot be less than:

a) 100% of the total nominal value of the bonds;

b) 80% of the total nominal value of the bonds;

c) 50% of the total nominal value of the bonds.

8. A registered security certifying its owner’s share in the right of common ownership of the mortgage coverage, the right to demand from the person who issued it proper trust management of the mortgage coverage, the right to receive funds received in fulfillment of obligations, the claims for which constitute the mortgage coverage, is :

a) mortgage participation certificate;

b) mortgage-backed bond;

c) investment share.

9. Mortgage participation certificates can be issued:

a) only commercial organizations that have licenses to carry out activities related to the management of investment funds, mutual funds and non-state pension funds;

b) credit institutions;

c) commercial organizations that have licenses to carry out activities related to the management of investment funds, mutual funds and non-state pension funds, as well as credit organizations.

10. The validity period of the agreement for trust management of mortgage coverage, established by the rules for trust management of mortgage coverage, should not be:

a) less than a year and more than 40 years;

b) less than a year and more than 15 years;

c) more than 15 years.

11. The rights certified by the mortgage participation certificate are recorded:

a) in undocumented form;

b) in documentary form;

c) both in non-documentary form and in documentary form.

12. Accounting for rights to mortgage participation certificates is carried out:

a) on personal accounts in the register of owners of mortgage participation certificates;

b) on securities accounts by depositories, for which, for these purposes, personal accounts of nominal holders are opened in the register of owners of mortgage participation certificates;

c) on personal accounts in the register of owners of mortgage participation certificates and, if provided for by the rules of trust management of mortgage coverage, on securities accounts by depositories, for which, for these purposes, personal accounts of nominal holders are opened in the register of owners of mortgage participation certificates.

13. The mortgage coverage of mortgage participation certificates may include:

a) claims on obligations secured by a mortgage; mortgage participation certificates certifying a share in the common ownership of another mortgage; funds received in connection with the fulfillment of obligations, the claims for which constitute the mortgage coverage, the foreclosure of such claims and the fulfillment of obligations under the mortgage participation certificates that constitute the mortgage coverage;

b) only claims on obligations secured by a mortgage; mortgage participation certificates certifying a share in the common ownership of another mortgage;

c) only funds received in connection with the fulfillment of obligations, the claims for which constitute the mortgage coverage, the foreclosure of such claims and the fulfillment of obligations under the mortgage participation certificates that constitute the mortgage coverage.

14. Mortgage participation certificates apply to:

a) exclusively on the over-the-counter market;

b) exclusively through the organizers of trading on the securities market;

c) are freely circulated, including through trade organizers on the securities market.

Test 2. Elimination of inconsistency

1. Distinctive features of issue-grade mortgage securities are:

a) a limited circle of legal entities having the right to issue them;

b) they can be issued only against security, the composition and procedure for replacing which are specified in the law;

c) special reliability of issue-grade mortgage securities, based on the establishment of special economic standards for them.

d) a special procedure for their release and circulation;

e) can be issued without collateral.

2. Credit institutions that issue mortgage-backed bonds must comply with the following requirements and standards:

a) requirements established by the Central Bank of the Russian Federation;

b) profitability and turnover standards;

c) the minimum ratio of the size of mortgage-backed loans provided and own funds;

d) the minimum ratio of the size of mortgage coverage and the volume of issue of mortgage-backed bonds;

e) the maximum ratio of the total amount of the credit institution's obligations to creditors, who, in accordance with federal laws, have a priority right to satisfy their claims to the owners of mortgage-backed bonds, and its own funds;

f) standard of adequacy of own funds;

g) liquidity standards;

h) the amount of interest and currency risk.

3. The mortgage agent must meet the following requirements:

a) must be a joint-stock company;

b) its full corporate name in Russian must contain the words “mortgage specialized organization” or “mortgage agent”;

c) its constituent documents must indicate the total number of issues of mortgage-backed bonds for the issue of which it is created; changing the total number of mortgage-backed bond issues for the issue of which a mortgage agent is created is not allowed;

d) must be a mutual investment fund;

e) cannot have a staff; the powers of the sole executive body of the mortgage agent must be transferred to a commercial organization;

f) maintaining the accounting records of the mortgage agent must be transferred to a specialized organization;

g) does not have the right to enter into paid contracts with individuals and carry out types of entrepreneurial activities;

h) after fulfillment of obligations under mortgage-backed bonds of all issues, it is subject to liquidation.

4. The advantages of mortgage-backed bonds are as follows:

a) they secure the right of their owners to receive interest, the amount of which is determined by the decision to issue mortgage-backed bonds of their nominal value;

b) they give the right to receive dividends;

c) the fulfillment of obligations under them is secured by the pledge of mortgage coverage;

d) provide their owners with all rights arising from the pledge of mortgage coverage;

e) the transfer of rights arising from the mortgage collateral without the transfer of rights to the mortgage-backed bond is invalid;

f) each owner of a bond of one issue has equal rights in relation to claims and other property constituting the mortgage coverage with other owners of bonds of the same issue;

g) they give the right to manage a joint-stock company;

h) issued by mutual investment funds.

5. Characteristics of mortgage participation certificates:

a) non-issue security;

b) registered security;

c) issue-grade security;

d) uncertificated form of issue;

e) certified security;

f) no-par security;

g) fixed-term security;

h) perpetual security.

Test 3. Alternative choice

Answer "Yes" or "No".

1. Is a specialized commercial organization whose exclusive activity is the acquisition of rights of claim under loans secured by mortgages and/or mortgages and which is granted the right to issue mortgage-backed bonds a mortgage agent?

2. A mortgage-backed bond is a bond, the performance of obligations under which is secured by the mortgage security?

3. Is a mortgage-backed bond an equity security?

4. Is a mortgage-backed bond a certificate-only security?

5. Do mortgage-backed bonds secure the right of their owners to receive interest, the amount of which is determined by the decision to issue mortgage-backed bonds of their nominal value?

6. Can the mortgage backing of mortgage-backed bonds be government securities and real estate?

7. The size (amount) of mortgage-backed claims constituting the mortgage coverage of bonds cannot be less than 80% of the total face value of the bonds?

8. At the time of submitting documents for state registration of the issue of mortgage-backed bonds, the size (amount) of mortgage-backed claims constituting the mortgage coverage of such bonds must be no less than their total face value and the amount of interest on these bonds?

9. Is a mortgage participation certificate not an issue-grade security?

10. A mortgage participation certificate is a registered security certifying its owner’s share in the right of common ownership of the mortgage coverage, the right to demand from the person who issued it proper trust management of the mortgage coverage, the right to receive funds received in fulfillment of obligations, the requirements for which are mortgage coverage?

11. The issuance of mortgage participation certificates can only be carried out by commercial organizations that have licenses to carry out activities related to the management of investment funds, mutual funds and non-state pension funds, as well as credit organizations?

12. Does each mortgage participation certificate certify the same amount of rights, including the same share of common ownership of the mortgage?

13. Are rights certified by a mortgage participation certificate recorded in non-documentary form?

14. Is mortgage participation certificates issued to the person who owns the rights of claim constituting the mortgage coverage?

15. Accounting of rights to mortgage participation certificates is carried out on personal accounts in the register of owners of mortgage participation certificates and, if provided for by the rules of trust management of mortgage coverage, on securities accounts of depositories for which, for these purposes, personal accounts of nominal holders are opened in the register of owners of mortgage participation certificates?

16. Is the number of mortgage participation certificates certifying the share in the right of common ownership of the mortgage coverage indicated in the rules of trust management of this mortgage coverage?

17. Does a mortgage participation certificate have no face value?

18. Is the issuance of securities derivatives of mortgage participation certificates allowed?

19. Is it allowed to replace claims and other property constituting the mortgage coverage of mortgage participation certificates?

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2.1.3.2. Securities Much more often, in the form of payment by the founder of his share, the company can receive any securities, for example, a bill of exchange from a third party. Let us recall that the monetary value of non-monetary contributions to the authorized capital of the company is approved by a decision of the general meeting

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What are derivative securities? Buying derivatives is like placing bets. Why? Derivative securities, or, as they are also called, derivatives, do not have their own price - their price depends on the price of the primary securities and other factors. Their

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Securities and the stock exchange Securities are traded on the so-called stock exchange. The principles of trading are the same, but there are many more terms and features of trading, and these are the ones that appear

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Securities as an Asset Kim and I rarely invest in securities because such investments are almost impossible to manage. By purchasing stocks, bonds or mutual funds, an investor cannot in any way influence either income, expenses, assets or

Profits from the sale of mortgage-backed bonds are used to issue new loans. The rules for the issue and circulation of bonds are prescribed in Federal Law No. 152 of November 11, 2003.

Characteristics

Bonds are debt and income securities that are issued in documentary or non-documentary forms. The collateral for mortgage-backed bonds is real estate. The repayment period ranges from one year to forty years, but cannot exceed the term of the mortgage agreement. Until full repayment, mortgage bonds are freely traded on the secondary securities market.

Issuers of mortgage-backed bonds can only be credit institutions, or mortgage agencies. The process of raising funds against mortgage payments is called securitization. This mechanism allows you to select loans that are reliable in terms of repayment level and convert them into mortgage-backed bonds. They may include obligations that meet the following requirements:

• the residual debt is no more than 80% of the market valuation of the collateral;
• replacement of property can only be carried out with the consent of the creditor;
• pledged property is subject to insurance against the risks of complete destruction or significant damage;
• The subject of the loan agreement is money.

It is prohibited to use disputed property or bad debts as collateral for mortgage coverage.

Advantages

The issue of mortgage bonds contributes to economic development. All market participants have direct or indirect benefits:

• credit institutions are increasing lending volumes;
• investors receive liquid assets with a high degree of profitability and reliability;
• lower interest rates benefit borrowers;
• financing of objects under construction allows creating new jobs.

Bond yield

During the entire period of ownership of mortgage-backed bonds, the holder receives a coupon income, which is a certain percentage of its face value. Coupon income is calculated daily, but payments are made annually, semi-annually or quarterly. At the end of the specified period, the bonds are redeemed at par.

Advantages and disadvantages

Mortgage bonds have the following advantages:

• n reliability of investment;
• d availability and liquidity;
• With income stability.

The disadvantages include:

• With relatively low yield compared to other types of securities;
• V the likelihood of early termination of obligations.

The law provides for the possibility of early repayment of a mortgage-backed bond if the issuer of the Central Bank committed violations during the issue and circulation of bonds. The owner has the right to make a request for early repayment in the following cases:

• O obligations on bonds exceed the amount of mortgage coverage;
• V violations were identified in the procedure for replacing property with mortgage coverage;
• P other violations of the rules for issuing Central Banks.

Mortgage-backed bonds are a low-risk investment of available funds, because... The yield on bonds is always higher than the yield on a deposit in a bank.

Within the competence of the Federal Law “On Mortgage Securities” dated November 11, 2003 No. 152-FZ

1. Mortgage-backed bond– a bond, the fulfillment of obligations under which is secured in whole or in part by the mortgage security.

Mortgage coverage – claims secured by a mortgage for the return of the principal amount of the debt or for the payment of interest under credit agreements and loan agreements, incl. certified by mortgages.

Mortgage participation certificates

Cash in Russian currency or in foreign currency.

State Central Banks

Real estate in cases provided for by law

Payment of interest must be made at least once a year. These are coupon bonds. These bonds can be issued credit organizations And mortgage agents(- a specialized commercial organization that meets established requirements and whose exclusive activity is the acquisition of claims on loans and the acquisition of mortgages). They are issued only in the form of documentary bearer securities or registered non-documentary securities.

2. Mortgage participation certificate– registered share investment market undocumented securities, certifying the share of its owner in the right of common ownership of the mortgage coverage; as well as the right to demand proper trust management of mortgage coverage, the right to receive money. Wed as income from this Central Bank. It is not an issuing Central Bank.

Owners bear the risk of default on the obligations on which the mortgage is covered.

3. Mortgage– in accordance with the mortgage agreement, the mortgagee-creditor (bank) has the right to receive satisfaction of its claims against the debtor from the value of the mortgaged real estate of the other party.

Used literature on the topic:

1. Civil Code of the Russian Federation

2. “On the securities market” Federal Law dated April 22, 1996 No. 39-FZ

3. “On JSC” Federal Law dated December 26, 1995 No. 208-FZ

4. “On mortgage-backed securities” Federal Law dated November 11, 2003 No. 152-FZ

5. “On promissory notes and bills of exchange” dated March 11, 1997 No. 48-FZ

6. Galanov V A. Securities market. M: Infra-M, 2010

6. Genesis of the Russian stock market: textbook. manual for university students studying in the direction 080100.62 Economics / E.S. Vasiliev, T.G. Volkova, R.A. Galiakhmetov. - Izhevsk: IzhSTU Publishing House, 2012

7. Kilyachkov AA, Chaldaeva L A. Securities market and stock exchange business. M.: Yurayt, 2010.

Topic 8. Financial institutions

The implementation of investment demand and supply is carried out by financial intermediaries endowed with broad capabilities to serve the investment and financial needs of economic entities. Such intermediaries are called - financial and credit institutions (FCI).

FKI - These are organizations that mobilize investment resources of households and the production sector, with their subsequent investment in financial markets in the form of investment or vessel capital.

Types of FCI:

Commercial banks

Insurance companies

NPF (non-state pension funds) + PFR (Pension Fund of Russia)

Investment companies

Investment funds.

Stock exchanges

Credit unions.

Pawnshops

A separate group among FCIs are ANDcollective investment institutions.

With collective investing in the financial market, funds invested by a large number of investors are combined into a single pool (fund) under the management of a professional manager for their subsequent investment in order to obtain investment income.

As a rule, forms of collective investment have the following characteristics:

Funds are raised by placing securities or concluding agreements;

The main activity is investing collected funds in securities and other property permitted by law;

The main share of investment income is obtained in the form of income from securities and transactions with financial assets;

Distribution of income received from investment among participants in a collective investment scheme in the form of dividends, interest and other payments.

Collective investing has a number of advantages:

possibility of professional management;

diversification (diversity of investment locations in order to reduce investment risk);

reduction of costs associated with investment;

access to foreign financial markets;

protection of investors' rights

use of a favorable tax regime.

Types of collective investment in world practice:

1. Corporate investment (forms are created in the form of joint-stock companies, fund participants are shareholders. The management company works in their interests) - USA, Luxembourg

2. Trust (funds are created on the basis of a contract between the trustee and the owner or trustee of the fund) – Australia, South Africa, New Zealand, USA

3. Contract (fund assets belong to the management company) – Germany, Italy, Switzerland, Japan.

Collective investors in the Russian Federation include::

Investment funds managed by management companies

Mutual Funds - mutual investment funds;

AIFs - joint-stock investment funds;

Non-state pension funds (NPF);

Credit consumer cooperatives of citizens.

Investment fund- a property complex owned by a joint-stock company, or in the common shared ownership of individuals or legal entities, the use and disposal of which is carried out by the management company exclusively in the interests of the founders of the fund (shareholders, shareholders). [Federal Law “On Investment Funds”]

AIF- This is an OJSC whose exclusive activity is the investment of property in securities and other objects provided for by law. (real estate, precious metals, venture investments, etc.)

Not entitled to carry out other types of activities other than investment. Has a license. Shareholders may be individuals. and legal persons other than the special depository, registrar, appraiser and auditor serving the AIF. AIF property is divided into: property intended for investment (investment assets) and property intended to support the activities of the fund's bodies. The assets of the AIF (investment assets) are transferred to trust management by the management company. AIF shares must be ordinary shares only, and must be paid in full upon placement, and only in cash. Dividends are paid based on the results of the financial year, if there is a profit of the AIF, that is, if the amount of net assets at the end of the year exceeds the amount of net assets at the beginning of the year.

mutual fund This is a separate property complex consisting of property transferred to trust management by the management company, the founders of trust management (shareholders), with the condition of combining this property, and property received in the process of trust management. The share in the ownership of this property is certified by a security - share.

Investment share - a registered security certifying its owner’s share in the ownership of the property constituting a mutual investment fund. The share gives the following rights to the shareholder:

The right to demand from the management company the proper management of the mutual fund;

The right to receive monetary compensation upon termination of the mutual fund trust management agreement with all shareholders;

The right to purchase or sell shares from the management company that manages the mutual fund or from its agents.

Each share certifies the same share and gives the same rights, while it is not an issue-grade security or a book-entry security. Rights to shares are taken into account by a specialized depository or register holder. A mutual fund is not a legal entity, therefore there is no income tax or other taxes for legal entities, there is only personal income tax! The estimated value of an investment unit is determined by dividing the NAV (net asset value), calculated on a day not earlier than the day of acceptance of applications, by the number of investment units of the mutual fund.

NAV = Assets - liabilities of the mutual fund.

Estimated share price = NAV/number of shares.

Actual share price (purchase) = Settlement price + premium (max 1.5%)

Actual share price (sales) = estimated price - discount (max 3%)

Income = (Actual sale price - Actual purchase price)

Income (if any) is subject to personal income tax.

Types of mutual funds.

1. Depending on the method of submitting applications for the purchase/sale of shares, funds are divided into:

open

closed

interval

IN open mutual funds The shareholder has the right on any working day to demand that the management company accept an application for the sale or purchase of a share.

IN interval mutual funds such a right exists only during established periods, but at least once a year.

In closed mutual funds, the shareholder does not have such a right.

The purchase of shares is carried out at the beginning, and the sale at the end of the mutual fund's validity period. A closed mutual fund has a validity period from 3 to 15 years.

2. Depending on the method of placing mutual funds, mutual funds are:

Mutual fund of shares

Mutual Fund of bonds

Mutual investment fund

Money market mutual fund

Direct investment mutual fund

Mutual fund for venture investments

Mutual Funds

Rental mutual fund

Real estate mutual fund

Mortgage mutual fund

Index mutual fund

Credit mutual fund

Commodity market mutual fund

Hedge - Mutual Fund

The management company (MC) managing the assets of the mutual fund does not have the right to:

alienate the assets of the mutual fund free of charge;

does not have the right to purchase AIF shares and mutual fund property under trust management;

does not have the right to acquire for the mutual fund property owned by this management company;

Does not have the right to purchase securities issued by a special depository, registrar, appraiser, or mutual fund auditor;

Does not have the right to use property owned by the mutual fund to ensure the fulfillment of its own obligations!!

Non-state pension funds (NPF)- this is a special organizational and legal form of a non-profit social security organization, the exclusive type of activity of which is non-state pension provision of fund participants on the basis of agreements on non-state pension provision of the population with fund investors in favor of fund participants, as well as the implementation of compulsory pension insurance as part of the management of a funded fund part of the labor pension.

The types of activities of NPFs are:

Activities for non-state (voluntary) pension provision of participants in accordance with non-state pension provision agreements;

Acting as an insurer for compulsory pension insurance in accordance with contracts on compulsory insurance education;

The main activity of the NPF is non-state pension provision. This activity includes the following:

Accumulation of pension contributions of participants

Placement and organization of placement of pension reserves

Accounting for pension obligations in funds

Assignment and payment of non-state pensions to fund participants

The fund's activities as an insurer compulsory pension insurance includes:

Accumulation of pension savings (funded part of labor pension)

Organization of investment of investment savings funds

Accounting for pension savings of insured persons

Assignment and payment of the funded part of the labor pension to insured persons

Subjects

PFR (Pension Fund of Russia)

investors

participants

policyholders

insured persons

specialist. Depository

Participants relations on non-state pension provision and compulsory pension insurance are:

• credit organizations

  other organizations involved in the process of placing funds in pension reserves

Terminology used by NPF:

Investor- an individual or legal entity who is a party to a pension agreement and pays pension contributions to the Pension Fund.

Policyholder- an individual or legal entity obligated to transfer insurance contributions to finance the funded part of a labor pension in favor of the insured person.

Participant- an individual to whom non-state pension payments are to be made or are being made.

Insured person- an individual who has entered into an agreement on compulsory pension insurance.

Pension reserves- funds for the fulfillment of NPF obligations to participants.

Pension savings- means for fulfilling obligations to insured persons.

Credit Union is a consumer cooperative of citizens created by citizens who voluntarily united to meet the needs for mutual financial assistance.

Cooperatives can be created on the basis of: community of residence, work activity, professional affiliation or any other community of citizens. The number of members can be no less than 15 and no more than 2000 people.

The main principles of the activities of credit unions are:

voluntary entry;

freedom of exit;

equality of rights and duties of all its members;

personal participation of members in the management of the credit union;

Property of a credit cooperative (union) is formed from the share contributions of its members, income from financial activities carried out by credit unions, as well as from sponsorship contributions and charitable donations. The property belongs to the cooperative on the right of ownership.

Share contributions are funds transferred to members of a credit union into the ownership of the credit union for the implementation of its activities.

The personal savings of members of a consumer cooperative, attracted by it, are not its property and are not burdened with the fulfillment of its obligations.

Personal savings are funds transferred by a member of a cooperative to a cooperative on the basis of an agreement for use in accordance with the goals of the citizens’ credit cooperative.

Mutual Financial Assistance Fund - funds used by a credit cooperative and formed from the cooperative’s own funds and the personal savings of its members.

The funds of the credit cooperative are divided into:

1. Mutual Financial Assistance Fund

2. Funds necessary to carry out activities as a legal entity.

The Mutual Financial Assistance Fund is used to provide loans to cooperative members. The temporarily free balance of the mutual financial assistance fund (no more than half of the fund) can be used exclusively for the acquisition of state and municipal securities, as well as for storing them in bank deposit accounts.

issue loans to citizens who are not members of the credit union;

Issue loans to legal entities;

Act as a guarantor for the obligations of your own or third parties

Contribute property to the authorized capital of third parties;

Buy shares and securities

You cannot carry out transactions on financial markets using these funds.

Issue your own securities.

The transfer of funds from the cooperative to its members is formalized by a loan agreement, the agreement is drawn up in writing. The cooperative can provide its members with the following services:

consulting;

conclude insurance contracts on behalf and on behalf of its clients, but in accordance with its Charter.

Members of a consumer cooperative have the right:

use all services provided by the cooperative

participate in the management of the cooperative

transfer personal savings to a cooperative

get loans

receive information about the activities of the cooperative

upon termination of membership in the cooperative, receive the monetary value of a share of the property of the cooperative.

The bodies of the credit consumer cooperative of citizens are:

General meeting of members of the cooperative, board of the cooperative, audit commission of the cooperative, director.

Credit organisation- a legal entity that, in order to make a profit as the main goal of its activities, on the basis of a special permit (license) of the Central Bank of the Russian Federation (Bank of Russia), has the right to carry out banking operations provided for by law..

Bank- a credit institution that has the exclusive right to carry out the following banking operations in total:

Attracting funds from individuals and legal entities into deposits,

Placement of these funds on your own behalf and at your own expense on the terms of repayment, payment, urgency,

Opening and maintaining bank accounts for individuals and legal entities.

Banking operations include:

1) attracting funds from individuals and legal entities to deposits (on demand and for a certain period);

2) placement of raised funds on one’s own behalf and at one’s own expense;

3) opening and maintaining bank accounts for individuals and legal entities;

4) carrying out transfers of funds on behalf of individuals and legal entities, including correspondent banks, through their bank accounts;

5) collection of funds, bills, payment and settlement documents and cash services for individuals and legal entities;

6) purchase and sale of foreign currency in cash and non-cash forms;

7) attraction of deposits and placement of precious metals;

8) issuance of bank guarantees;

9) making money transfers without opening bank accounts, including electronic money (with the exception of postal transfers).

Credit institution in addition to the listed banking operations has the right to carry out the following transactions:

1) issuance of guarantees for third parties, providing for the fulfillment of obligations in monetary form;

2) acquisition of the right to demand from third parties the fulfillment of obligations in monetary form;

3) trust management of funds and other property under an agreement with individuals and legal entities;

4) carrying out transactions with precious metals and precious stones in accordance with the legislation of the Russian Federation;

5) leasing to individuals and legal entities special premises or safes located in them for storing documents and valuables;

6) leasing operations;

7) provision of consulting and information services.

A credit institution has the right to carry out other transactions in accordance with the legislation of the Russian Federation.

All banking operations and other transactions are carried out in rubles, and, if there is an appropriate license from the Bank of Russia, in foreign currency. The rules for carrying out banking operations, including the rules for their material and technical support, are established by the Bank of Russia in accordance with federal laws.

Credit organization prohibited engage in manufacturing, trading and insurance activities.

All banking operations can be divided into active and passive. Examples of active and passive operations are given in the table.

Active Operations

Passive Operations

1. Lending to individuals 2. Lending to legal entities 3. Mortgage lending (real estate pledge) 4. Leasing operations - a loan in the form of movable property secured by it. 5. Factoring operations - repurchase of legal obligations. Persons 6. Bill transactions: Accounting for bills - redemption for the purpose of repayment Collection - the operation of repaying bills on behalf of the client Acceptance - agreement to become a payer on client bills Bill of exchange loan - loan in the form of bills of exchange Loan secured by bills of exchange 7. Investment in securities and authorized capitals of other legal entities. 8. Currency transactions 9. Operations with precious metals 10. Mandatory reserves with the Central Bank and the Deposit Insurance Agency

1. Issue of shares 2. Issue of bonds 3. Issue of bills and bank certificates 4. Deposit operations 5. Settlement and cash services (opening current accounts for legal entities) 6. Interbank loans 7. Creation of required bank reserves

Features of the activity investment banks- is their focus on attracting long-term capital and providing it through long-term lending, acquisition of securities and participation in the founding activities of other legal entities.

Mortgage banks receive and place funds on a long-term credit basis secured by real estate. A feature of raising funds in such a bank is the issue mortgage securities- mortgage-backed bonds and mortgage participation certificates.

Trust Banks- specialize in the implementation of trust management on the basis of an appropriate license.

References