AHML Mortgage Borrower Assistance Program 2021: essence and conditions

The purpose of the bill is to restructure a “problem” mortgage loan, the servicing of which becomes an unbearable obligation for an individual . The borrower can make changes to a previously signed agreement or enter into a new one, which results in a reduction in the rate, a change in the loan currency to rubles, and an exemption from paying fines.

The state program in force for 2021 is an extension of the previous Decree of the Government and State Duma of the Russian Federation dated April 20, 2015 No. 373. The updated terms of co-financing are regulated by Law No. 961 of August 11, 2021, which came into force on August 22, 2021. The main changes affected the amount of funds that can be written off at the expense of the state.

Important! If the borrower has previously submitted an application for debt restructuring before the latest provision of legislation came into force, but it was not accepted, the individual has the right to re-submit the papers for consideration.

In 2021, the state aid project provided for compensation in the amount of 20 percent of the actual amount of debt, but not more than 600 thousand rubles. After the latest amendments came into force, the conditions became different:

• A fixed interest rate is established, not exceeding the value on the date of registration of the restructuring papers.
• The amount of actual debt is reduced by 1.5 million, but according to the conditions, the debt can be repaid at the expense of the state by a maximum of 30 percent.
• Obligations to pay penalties, penalties or other fines that accrued during the validity of the mortgage agreement are removed. Refunds of amounts already paid are not provided.
• The rate for foreign currency loans is set at up to 11.5% per annum, for ruble loans - less than the rate applied at the time of signing the restructuring documents.

If the borrowed funds were initially received in foreign currency, it will be changed to rubles at a rate not exceeding the current one. When signing an agreement on loan restructuring, a banking institution does not have the right to demand payment of additional fees for actions taken and to reduce the payment period.

Today, assistance in case of financial problems with the repayment of mortgage debt is provided by the Agency for Housing Mortgage Lending JSC. The same organization will compensate for losses incurred by credit institutions when part of the debt is closed.

Important! An approved application for participation in the state assistance program does not give the right to pay insurance payments from allocated funds (including title and personal insurance).

CONDITIONS OF PARTICIPATION IN THE STATE PROGRAM AND REQUIREMENTS

The state support program is not available to all citizens, but only to those who find themselves in difficult life situations. All categories are designated in the Resolution dated August 11, 2017. However, by decision of the interdepartmental commission, the conditions can be revised, but within clearly defined limits.

Important! In accordance with paragraph 7 of Resolution No. 961, by decision of the interdepartmental commission, the amount to be reimbursed can be revised and increased at the request of the creditor bank, but not more than twice. Also, this governing body is able to approve an application from an individual if he does not meet one or two points of the requirements.

In order to become a participant in the program, you must simultaneously meet all the conditions and requirements specified in the law. Their general list looks like this:

1. requirements for borrowers;
2. requirements for the mortgaged property;
3. criteria of the loan agreement;
4. conditions of the borrower's financial condition;
5. requirements for your own real estate.

The conditions for obtaining restructuring are specified in paragraph 8 of Resolution No. 961. Moreover, it is established that the borrower must meet all criteria, with the exception of the permitted deviation of 2 points, which will be analyzed by an interdepartmental commission.

WHO CAN APPLY FOR GOVERNMENT SUPPORT?

The following categories of the population can take advantage of financial support for mortgages from AHML:

• Parents or legal guardians with children under the age of majority.
• Persons with disabilities and parents of disabled children.
• Citizens who took part in hostilities.
• Persons whose guardianship includes dependents under 24 years of age (students, students, graduate students, interns, interns, etc.) studying full-time.
• At the same time, there are a number of conditions regarding the client’s financial condition:
• Reduction in monthly income by at least 30%.
• The total average monthly earnings of the borrower and other members of his family for at least 3 months should not exceed the subsistence minimum in double the amount for each person (monthly mortgage payments are taken into account).

Young families can also participate in the project, subject to conditions. There is also a special state program for this category.

REQUIREMENTS FOR A MORTGAGE AGREEMENT

Not every “problem” loan can be restructured. The state has established special requirements and conditions in this regard:

1. Increase in the monthly payment amount by 30% or more. The first payment and the last one, which was made before submitting the application, are subject to comparison.
2. The lending bank must be a participant in the assistance program.
3. The original mortgage must be at least a year old at the time you apply for assistance. Exceptions are cases when a loan was taken to repay a housing loan received more than 12 months before the date of drawing up the restructuring document.
4. Providing the bank with an application and a complete package of documents.

Paying attention to paragraph 1, we can conclude that for the most part the restructuring program is aimed at foreign currency mortgages. It is under such agreements that it is quite expected that the payment has increased by a third or more, since the US dollar, in the period from 2014 to 2021, has almost doubled in price. This also follows from the restructuring procedure, where among the simultaneous changes to the loan agreement, “change of currency to rubles” is indicated. However, this condition is not directly stated, that is, if the mortgage is in rubles (including the refinancing of a foreign currency mortgage into rubles), it makes sense to submit an application.

In other cases, as a rule, mortgage agreements imply a fixed or decreasing payment and a single interest rate for the entire payment period, which does not meet the requirements. The contribution amount may be changed due to debt restructuring without adjusting the term, variable rate or other factors.

Important! The total amount of credit debt, including arrears, and previous participation in the restructuring of the agreement do not matter. The client interacts with AHML through an intermediary acting as an agent bank to which the initial application is submitted.

WHAT MORTGAGES CAN BE RESTRUCTURED?

Russian legislation has established certain criteria that property acquired using loan funds must meet. These include the following:

• This living space must be the only one owned by an individual and all members of his family (it is assumed that the borrower and another person from his family have a total share of less than 50% in other real estate).
• The purchased property must be located in one of the populated areas of the Russian Federation and serve as collateral for the mortgage.
• The program applies to all types of living space, including those acquired under an equity participation agreement.
• Criteria for the real estate property itself: one-room apartment in an apartment building - up to 45 sq. m. m., if there are two living rooms - up to 65 sq. m., if the room has three or more rooms - up to 85 sq. m. m.
• Price per 1 sq. m. of the secured object should not exceed the average cost of a similar apartment or house on the primary or secondary residential real estate market by more than 60% (for calculations, data from Rosstat of Russia and information from the regional market are used). The listed restrictions do not apply to large families (three or more children).

Requirements for borrowers

Borrowers must also meet certain conditions to participate in the assistance program.

Requirements for borrowers:

• Russian citizenship (the assistance program for mortgage borrowers is designed exclusively for Russian citizens);
• income is less than two subsistence minimums provided for in the area of ​​residence and mortgage payments (calculation is carried out for each person in the family).

However, it is planned to work with an interdepartmental commission that will allow borrowers who meet not all, but only two, conditions of the program to apply. Perhaps then it will be possible to evade the demand for an increase in payments.

Important nuance! If there are co-borrowers who are owed a share of the same living space, they and their family members must also present a package of documents to the bank.

HOW TO RESTRUCTURE DEBT: PROCEDURE OF ACTION

The entire procedure related to changes in conditions is carried out in several stages. The first involves visiting a financial institution in person and drawing up an official application. The borrower must contact the branch of the bank where the original loan agreement was concluded. Using the sample provided by the manager, you need to write a statement about the need for debt restructuring.

You can prepare it first at home. All necessary documentation is attached to it. After this, the borrower, together with the bank employee, discusses the new lending conditions.

Important! Restructuring of an existing mortgage loan is carried out according to a decision made by the creditor bank to which the client submitted an application.

All papers are carefully studied, and it is also checked whether all requirements and restrictions under the assistance program are met. After a certain time, the borrower will be notified by the credit committee of the decision. It should be noted that banks have the authority to independently set the minimum and maximum terms for considering an application and making a final verdict. As a rule, this should take about 30 days, but judging by the reviews, we can talk about longer periods, since the banking institution and AHML often require additional documents. At the final third stage, a new contract is concluded, with different conditions, or an additional agreement is drawn up to the previous one.

When these three stages are completed, the borrower needs to contact the Ministry of Justice with the old mortgage and a ready-made package of papers in order to register changes to the collateral agreement.

Procedure for obtaining assistance

When the complete list of documentation is ready, it must be brought to the bank. And specialists from the financial institution, in turn, send them to AHML for consideration. After approval, the bank sets a meeting date for its client. Typically, it takes about 30 days to review AHML documents. However, as reviews indicate, sometimes the process takes up to six months.

Next, the client comes to the bank, and then the parties sign a new payment schedule, an agreement in addition to the mortgage agreement, and so on. Then you will have to wait 2-4 weeks until the mortgage comes from the bank’s archives. Justice carries out state registration of changes.

Many banks re-register the agreement, that is, adjustments are made to an existing agreement (additional agreement). However, some banks prefer to first close the current loan and then open a new mortgage, but for a smaller amount. VTB 24, for example, operates under such conditions and this is not entirely beneficial for borrowers, because they will have to pay for insurance and real estate valuation again.

WHAT DOCUMENTS ARE NEEDED FOR REGISTRATION

To consider an application to revise the terms of the contract, mortgagers need to prepare in advance and attach a package of documentation (it can be found on the official AHML website), consisting of the following:

• Identity cards of all participants in the transaction and family members (passports) and copies thereof.
• Documents confirming that the borrower falls into one of the preferential categories of individuals applying for financing (children’s birth certificates, combat veteran’s certificate, VTEK certificate/medical and social examination (copy), etc.).
• Documents confirming the amount of earnings of all participants in the transaction for at least the last 3 months (photocopies of the work record book, certificates of the amount of earnings according to the 2-NDFL sample or other official documents). Unemployed citizens also attach their employment certificate, a certificate of the amount and nature of accrued benefits, and information about the status of their account with the Pension Fund.
• An extract obtained from the state register, which confirms the status of the pledge. Applications indicating the existing real estate owned by the borrower and his family or its absence (the application form can be downloaded here).
• Mortgage papers and all documents related to the mortgage (purchase and sale agreement and its copy, property appraisal report, mortgage payment schedule, cadastral and technical passport).
• Agreement on shared participation in construction and its copy (if available).

The borrower will also be required to fill out an application form and consent to the processing of personal information. The forms of these papers depend on the specific bank.

In addition to the listed documents, each financial institution or AHML itself may require additional papers to be attached, depending on the situation, which will help make the right decision on the application for loan restructuring.

LIST OF RUSSIAN BANKS PARTICIPATING IN THE PROGRAM

Papers for the use of assistance under the state special program are accepted by most of the main banking institutions of Russia: Sberbank, Gazprombank, VTB, Rosselkhozbank, Bank of Moscow, UniCredit Bank, Promsvyazbank, Rosbank, Binbank, Absolut Bank", "Avtogradbank", "AK Bars", "Akibank", "Globex Bank", "Far Eastern" Bank, "Zapsibkombank", "Zenit" Bank, "Izhkomban", "Krayinvestbank", "Kurskprombank", "LOKO- Bank", "Metcombank", "MTS-Bank", "OTP-Bank", "Primsotsbank", "RosEvroBank", "Svyaz-Bank", "Sobinbank", "Center-Invest" bank, etc. Total, According to the AHML website dom.rf, 100 banking organizations and 21 mortgage agents participate in the program.

The State Duma adopted a law to help troubled mortgage holders

On February 19, the State Duma of the Russian Federation, in its final reading, adopted a law to reduce the financial burden on mortgage debtors. The bill will make life easier for “mortgage holders” caught in court.

The adopted law establishes the rule for collecting the enforcement fee for mortgage debtors. The new rule will reduce the financial burden on families in difficult financial situations.

Now citizens who have paid off their mortgage loan in full in accordance with the law on mortgage lending, as well as those who have become participants in government programs to assist borrowers, will be exempt from paying the enforcement fee.

Until this point, joint debtors on a mortgage loan had to pay an enforcement fee of 7%. Thus, you will no longer have to pay the execution fee twice.

Speaker of the State Duma of the Russian Federation Vyacheslav Volodin explained:

“In other words, if a husband and wife took out a mortgage on an apartment and they have difficulties with payments and debt, they must return to the bank not only the loan itself, but also the interest on it. And both will pay the execution fee. This is often a considerable amount, which can reach tens or even hundreds of thousands of rubles. The law we adopted abolishes this provision - now the enforcement fee will be 7% from all joint and several debtors combined.”

This can reach tens or even hundreds of thousands of rubles.”

The law adopted by the deputies abolishes this provision - now the enforcement fee will be 7% of all joint debtors combined.

“This will allow us to support citizens who find themselves in a difficult financial situation,” says Vyacheslav Volodin.

In addition, the enforcement fee will not need to be paid to mortgage debtors who have become participants in state programs to assist borrowers and have paid off their mortgage loans in full.

This rule applies primarily to foreign currency mortgagers, explained the head of the State Duma Committee on Security and Anti-Corruption Vasily Piskarev. According to him, today more than 20 thousand families are included in these programs.

Comment from one of the authors of the initiative, Viktor Kidyaev:

“The bill concerns assistance to “mortgage holders” who have been brought to trial. Citizens who, for one reason or another, could not cope with the credit burden and lost in court to the bank. This is a very painful topic for people, very complex.”

Corresponding changes will be made to the law “On Enforcement Proceedings”.

Why the program was developed

Many people who have taken out a mortgage on their home are experiencing difficulties today. With rising prices and low incomes, many people are finding it difficult to pay their mortgage payments. This problem cannot be called personal, because every borrower is a consumer and the economic situation in the country depends on his purchasing power. In order for the recession to stop, a program to help mortgage borrowers of the AHML was developed.

The program is aimed at segments of the population who have difficulty paying off their mortgage loans, and is, in essence, a loan restructuring. Standard loan restructuring is a rather twofold manipulation, because the reduction in the loan burden occurs mainly due to an increase in loan terms, therefore, the amount of interest payments also increases. The mortgage borrower assistance program, in contrast to the standard “stretching” of a loan, offers truly favorable conditions and provides a number of additional opportunities for participants:

• Revision of the terms of the loan agreement and reduction of the rate to the minimum level, 12% per annum;
• Recalculation of foreign currency mortgages at the most favorable rate;
• Writing off fines for late payments, if the reasons for the delay did not depend on the borrower;
• Mortgage compensation, up to 600,000 rubles per borrower, intended to repay part of the loan.

V.V. Putin proposed introducing “mortgage holidays”

Vladimir Putin also drew attention to this problem in his address to the Federal Assembly on February 20, 2021. So he proposed creating “mortgage holidays” for families who find themselves in difficult life situations (losing a job, having a serious illness, etc.). Thus, a deferred payment should be granted without prejudice to both the family and the financial institution.

As Vladimir Putin noted: “Today, many citizens take out consumer loans for various needs. But in life, anything can happen—illness, loss of a job,” the president noted. “But in this situation, driving a person into a dead end is the last thing.” Additional legislative guarantees are needed to protect people. I propose to provide for mortgage holidays. That is, a deferment of payments for citizens who have lost their income. We must give them the opportunity to keep their only home, and move the loan and repay it later. This is not an easy task. Here we need to think about how to support a person and not harm financial organizations. But it can be done."

Other measures to support families were discussed in this article.

How to get a mortgage restructuring with the help of AHML 2020

You need to understand that not every Russian borrower will have the opportunity to receive the government assistance specified above. To benefit from special government support, you must meet certain criteria.

• Only citizens of the Russian Federation who have minor children or children with disabilities, as well as WWII veterans and disabled people will be able to count on receiving state support for the restructuring of mortgage loans this year.
• There are also specific conditions for the income of a citizen who wants to arrange a mortgage restructuring. Average gross household monthly income must have decreased by thirty percent over the past ninety days, or mortgage payments must have increased by thirty percent (applicable for mortgages that were denominated in a foreign currency). The family budget, after making a monthly loan payment, should be up to two times the subsistence level.
• An important criterion is also the location of the residential property on the territory of the Russian Federation and its registration as collateral.
• The area of ​​apartment housing should be no more than 45 m² for one-room, 65 for two-room and 85 for dwellings with more rooms. The price of one m² can be no more than sixty percent higher than the market value of a m² of typical apartment housing in this federal subject. (This clause cannot be applied to large families).
• There must be one home. It is acceptable for one or another family member to have a share in another home on the part of the borrower, but not more than 50%.
• The mortgage was issued more than one year before registration.

Other details can be found out by carefully studying special government regulations or by calling the AHML hotline.

Banks according to AHML 2020

With government assistance, commercial organizations such as Sberbank, Rosselkhozbank and others are able to provide services for restructuring mortgage loans of citizens of our country. The program makes it possible for banks to receive lost profits from mortgages. In turn, borrowers get a chance to get rid of a certain portion of the debt, which is very important for loans in foreign currency. The government's restructuring of loans for the purchase of housing prevents the subsequent growth of a person's debt to credit institutions.

Remember that AHML mortgage loan restructuring 2020 represents a truly responsible decision for mortgage borrowers. This will one way or another have an adverse effect on the credit history, however, citizens of the Russian Federation who have completed a mortgage restructuring will still have their own property.

You should definitely analyze all the advantages and disadvantages of such a solution, read the reviews on the work of AHML 2020. A large number of borrowers deliberately delay payments for subsequent processing under a convenient state program. Some citizens of our country do not pay due attention to the fact that after this, obtaining a loan in the near future will most likely be very problematic or even impossible. However, this is still much more convenient and rational for the borrower compared to unpleasant legal proceedings with one or another Russian commercial bank.

Advantages and disadvantages of Sberbank mortgage programs

First of all, before applying for a mortgage on real estate, you need to study all the pros and cons of obtaining it from Sberbank.

In general, the advantages of a mortgage are much greater than the disadvantages. It’s enough just to approach the mortgage loan process practically and prudently.

Replacing foreign currency mortgages with ruble ones

Many mortgage borrowers found themselves in the unpleasant situation of financial collapse precisely because at one time they took out a loan in foreign currency. Long-term stability in the foreign exchange market weakened the vigilance of citizens, and it began to seem that nothing would shake the current situation. The amount of mortgage loans taken due to the jump in the exchange rate increased several times. And given the interest rate applied to them, repayment of dues has become simply unrealistic.

The state support program allows citizens who have taken out a mortgage in foreign currency to convert the loan into the ruble equivalent.

The restructuring of such loans is carried out not at the established rate, but according to the laws adopted today. The interest rate applied to the ruble equivalent should not exceed that provided by the bank today for issuing mortgage programs. The rate can be increased only in one case, if the borrower has violated the established insurance rules provided for in the loan agreement.

The essence of the mortgage borrower assistance program

The goal of the program is to eliminate problematic home loans. The debtor client can hope to review the loan parameters in order to repay the debt on comfortable terms in the future.

Carrying out restructuring with state support has many advantages for debtors:

• Remain the owner of the purchased apartment, since if the loan obligations are not fulfilled, the creditor bank has the right to sell the collateral housing to compensate for expenses.
• The debtor has the opportunity to sell the credit apartment and buy a new one at a significantly low price, and use the remaining money to pay off the debt.
• Receive relief on loan terms.
• Prevent your credit history from deteriorating.

Over several years of operation, this program has already proven itself positively and has helped thousands of families.

New conditions for the program to help mortgage borrowers

The following changes have been made to the procedure for providing financial support:

1. Reducing debt by 20-30%, but not more than 1.5 million rubles. Compensation of 30% is acceptable only for a certain group of Russians - disabled people, combat veterans, families with two or more children or those with a disabled minor. If you have one child, you can only count on 20%.
2. Transfer of foreign currency payments into rubles, interest is set to 11.5%.
3. For a ruble loan, the rate cannot be higher than what is currently accepted in a banking institution.
4. Compensation can be used in two ways - pay off the debt in a lump sum or reduce monthly payments by 50% (for 1.5 years or more).
5. Applications for participation are approved when there are deviations from the basic conditions in several points.
6. Citizens who have received a loan no earlier than 1 year are eligible to apply.

Sberbank is more willing to provide this restructuring option: lost interest income is compensated from the federal budget.

You might be interested in:

How to get a mortgage deferment upon the birth of a child Sberbank

Documents for restructuring

Financial organizations consider an application for debt restructuring with the help of state support only if the borrower provides the required package of documents for consideration of his candidacy. Information about his financial and family situation must be confirmed and fit the conditions of the program.

The list of documents consists of the following forms:

1. Passport.
2. Valid loan agreement.
3. Documents for minor children - birth certificates.
4. Certificate of disability or participation in hostilities and receipt of veteran status.
5. A certificate from a medical institution if a minor child has a disability.
6. Certificate of income for the last three months.
7. A copy of the work book from the employer or its original if the person is not working at the moment.
8. A certificate from an educational institution stating that the adult child is a full-time student.
9. Guardians and adoptive parents must provide a decision from the guardianship authorities and a court order.
10. Extract from the Unified State Register.
11. Insurance policy.

The list may be supplemented at the discretion of the credit institution. Attached to the article is a sample application for mortgage restructuring.

Procedure

To receive government financial support to repay part of the remaining mortgage loan, the borrower will need to go through a step-by-step procedure. It consists of the following steps:

1. A package of documents is submitted to the credit institution that issued the mortgage loan.
2. The bank reviews the submitted application and issues its verdict.
3. If the decision is positive, the applicant moves on to the next step, and if the decision is negative, he can contact the interdepartmental commission for a more detailed consideration of the circumstances and a more individual response.
4. A new loan agreement is concluded or an additional agreement is prepared to an existing form.

First, the bank repays the difference from its own funds, but then the entire specified amount is compensated by AHML

Contacting the bank

Many borrowers complain that the bank refuses to restructure their mortgage loan, not wanting to consider documents for receiving government support. It should be taken into account that not all credit institutions are included in the AHML list, which complicates the possibility of cooperation. If the refusal is the initiative of the bank, then you can safely submit an application to the interdepartmental commission, since such actions are considered unlawful.

A borrower who, in his own opinion, meets the established requirements and conditions of state support is required to fill out an application form. This form is confirmed by the collected documents and submitted to the creditor for examination and a final verdict.

A positive decision results in a revision of previously established payment amounts. Before signing new agreements with the bank, you should decide on the method of compensation - one-time or in installments to pay off monthly payments.

Contacting AHML

The entire registration procedure is carried out in close cooperation between the bank and AHML. If the process follows a standard path, then the citizen will not have to apply to AHML on his own; this will be handled by the lender. The bank submits the already reviewed documents to the agency, which, based on them, transfers the agreed amount of compensation to the financial organization.

If the creditor rejected the application for debt restructuring or decided to compensate only a small part of it, which, in the opinion of the property owner himself, is unjustified, a commission review of the situation can be initiated. In some cases, the commission may decide to pay 100% of the debt, but for this purpose the reasons must be very compelling.

Prospects for receiving a subsidy from Sberbank

Borrowers who were informed in advance about the extension of the program, as well as those who managed to quickly collect the necessary package of documents, which, at the discretion of Sberbank, which was included in the co-financing program and received a certain amount of funds under the program, could be significantly expanded before approval, could count on receiving a subsidy in 2021 statements.
To date, all funds allocated by the Government have already been exhausted. The conclusion for borrowers who did not have time to submit an application is not comforting. In 2021, you should not count on receiving subsidies to pay off your mortgage. The State Duma has not yet received legislative initiatives to extend co-financing.