In late April, the Bank of Russia proposed to make mortgage insurance (the risk of damage and loss of property and risk of life and health) is required and shift it from the borrowers to the lenders.
In this case, when there will come insured event, the Bank will not be able to demand from the borrower repayment of a mortgage loan, said Vladimir Chistyukhin in an interview to “Rossiyskaya Gazeta”. Now the borrower is obliged to insure life and health and not protected in the event of bankruptcy of the insurance company.
“Everything has to be covered, he says. Is a question Bank as it will negotiate with the insurance company, considered whether it was all risks. The Bank will deal with the insurance company, if the realized minimum a list of risks that we directly offer to register”.
For loss or damage to the property of the Central Bank proposes to include at minimum a list of risks fire, explosion, flooding, natural disasters, theft, robbery, robbery, intentional destruction by third parties, and life insurance health and – death assignment of disability group I or II, long-term sick leave, loss of income as a result of the epidemic.
“Let us suppose an extreme case, says the Chairman of the Central Bank. – God forbid, the borrower dies or dies from the disease. Today his family almost certainly would have faced difficulties in the payment of the loan, and the mortgaged property would be foreclosed. It is not enough that the family lost a breadwinner, she should still lose the apartment. In our design the loss of a breadwinner – not all, but in most cases the family doesn’t lose both the apartment.”
the Central Bank also believe that the mortgage insurance risk banks involves greater transparency.
“When we start to figure out what is the full cost of the mortgage, the banks put the blame on the insurance company, the insurance company put the blame on the banks, explains Chistyuhin. – All say that this is not our rate is their rate, and we charge higher fees. To understand this is very difficult. Our proposal comes from the fact that the Bank is a part of the insurance will mortgage interest rate. And the citizen will be much clearer what he pays, what is the total cost of the loan, including insurance.”
the Concept prepared by the Bank of Russia proceeds from the fact that the transfer of mortgage insurance to banks will reduce the costs of insurance, and hence reduce the final cost of the mortgage. According to Chistochina, today the consumer is actually opposed by both banks and insurance companies, often not realizing the different rules and nuances. “Obviously, when you oppose each other are two strong market entity, insurance company and Bank, the Bank will be able to get insurance companies more concessions, and this will contribute to reducing the total cost and��swelling”, he said. Now the margin insurance of mortgages for the Bank and for insurance companies is extremely high. “We calculated that from the collected award on the basis of 2019, the insurance company paid, and if you take a mortgage insurance, and life insurance and health, about 11% – said Chistyukhin. – Represent the margin of 89%! Of course, banks and insurance companies are even operating expenses, but it’s still an extremely high figure. For example, in CTP payments are 90-95% of collected insurance premiums, and it is not so bad.”
full interview with Deputy Chairman of the Bank of Russia Vladimir Chistyuhin read in the nearest numbers of “Rossiyskaya Gazeta”
