The party has the right to sell mortgage assets

Perhaps the content of refinancing mortgage makes the NH law experts "awe" for feedback sessions of TCTD on the civil code (Amendment) regulations is collateral sold side, replace, Exchange, donation, lease, loan mortgage lenders object without the consent of the receiving party.

This is a new point of view by provisions of the civil code, in case the collateral is goods side of the carriage, the mortgage refinancing the right to sell without the consent of the receiving party. But with the kind of assets to sell, want to replace, they must receive the consent of the receiving party.

But, according to Mr Huy, Deputy Director of Department of secured transactions (Ministry of Justice), the drafting Committee members, practical application of laws in the past, very few cases parties get a mortgage agreed to the sale of mortgage assets. This makes collateral carried away make sure freezes and does not exploit the economic value.

Also according to him, if the new rules are applied, the protection of the rights of the mortgage will pursue right through the property to the end of the mortgage. With the sale of the property to the public registration mechanism, transparency, i.e., property buyers are considering reverse mortgage information whether to purchase or not when this property is used as collateral.

Together with the procedure for resolving civil disputes and lawsuits under the shortened procedure; enforceable judgment immediately for the transaction which the parties have made public, transparent and have the agreement on the application of rights comply immediately "will help the party get a mortgage right to pursue enforcement of its assets.

This is one of the new spots just ensure mortgage refinance the economics of property, just push this trading transaction and establish a legal way ", he command the explain more.

Risks from getting the mortgage assets of third parties

Recorded from home mortgage loans of the Court at Hanoi TAND shows, the case in which credit banks lend and receive secured property is the land use rights of third parties more and more.

According to the assessment of Mr. Pham Tuan Anh, Chief of the Economic Court TAND Hanoi, with the difficult economic situation such as the present, the number of cases of credit or otherwise, the service requires the Bank's increasing debt. Notably the service collections in which mortgage lenders and FIRMS with assets of third parties is also much higher. Except block foreign banks, most of the commercial banks in the country, even big banks like Vietcombank, BIDV, Vietinbank, Agribank ... have this type of lawsuit judgments.

For example, the collection of Techcombank for an individual (Thanh Xuan district, Ha Noi), in which this personal loan of 410 million through 2 credit contracts, reverse mortgage calculator secured property is land use and property affixed on the ground of a family in the District of Danfeng (Hanoi). When the person fails to repay the loan, the Bank requires to secure the home, the family of the Earth knows, both the principal and interest of the debt of 510 million.

While according to this family, they just need to borrow 100 million and actually received only 88 million, after deducting the interest rates and fees. However, due to the correct mortgage contract is signed by this family, has secured transactions registry, should the Court declare the broadcasting rights have commercial property Techcombank in case the borrower does not pay the debt.

Or the case for Hung company loan Seabank 5.7 billion, collateral is land use and associated property on land of 3 households. After petitioner bank debt and reclaim the detected the signature of a family on the mortgage contract is forged. A household and others giving evidence about refinancing a mortgage whether they have to repay 1.7 billion, was Deputy Director of the Albert Branch Three Family sign, of 2.4 billion that their families have the guarantee, while Albert said, testifying from the Bank at only 700 million.

In these cases, on the banking control as if they were fully implementing the provisions of the guarantee transactions like mortgage contract notarized, have secured transaction registry. However, the Bank still bear many costs in the collection process, not to mention the hassle.

Mr. Pham Anh Tuan said: "experience shows that, while bank loans and put away the GOV'T property is the property of COMPANIES or assets of relatives such as parents, brothers and sisters, then it is the loans. The case of DN a loan where collateral is of another person, called the third party, the Bank needs to be vigilant. Meanwhile, the property loan needs only a few dozen million or 100-200 million, but the mortgage loan officer is not a Bank, so thanks to DN stand up the loan. But even more, the borrower usually GOV'T disparity, they retain and provide mortgage loans projects with high interest rates. If the loan goes well then they can pay the principal and interest for the Bank, entitled part the difference, but when the COMPANIES could not pay the bank debt, the debt burden will override the home ground ".

Moreover, when lending has secured property is a third party, the Bank faces many risks if not fully implementing the provisions. For example, when DN Bank loan they must be approved by the BOARD, so the banks need to check to reverse mortgages comments in writing of the BOARD or not. But when the Bank does not check should not detect only loans ceo DN know, BOM does not know, lead to bank hard to claim to be owed.

Or household Bank loan when they mortgaged property is the land use right and property attached on the ground must have the approval of all members of the household. But there are cases of parents just sign the Bank, forgetting the children, leads to mortgage contracts null and void when there are family members aged 16 and up are not signed. Mortgage contracts not void of any other Trust Bank lending and credit risk increased.

Land use is popular collateral types, but there have been cases when the Bank received the mortgage specifies price valuation of land without homes, reverse mortgage interest rates lead to disputes in the collection process. Not to mention, when the borrower wants to increase the price of the secured property to can be more, plus Bank employees did not do the right processes, rules of valuation, leading to difficult to recover enough loans.

Of the risks when the secured property of a third party, then the elements of risks from mortgage management of the Bank is very important. These cases are not eligible for guaranteed asset disposal is often caused by bank employees did not do the right processes, regulations. "When the collateral received from a third party, the Bank needs to be more careful, and check for the property, so will avoid cases of forged signatures, also limit the risk," said Pham Tuan Anh said.

Proposed establishment of the housing mortgage loan

Bank for investment and development of Vietnam (BIDV) has just proposed the Government establish the company refinance home mortgage lending in order to timely support, the difficulty of the economy and the property market.

Mr. Tran BAC HA, Chairman of the Board of the BANK said, according to the BANK's proposal, the company will have a capital of 5,000 billion and in the first 5 years of operation is expected to mobilize more about 50,000 billion to finance low-income housing market. This capital will be retrieved from the Government incentive funds, reverse mortgage info from development assistance ODA capital sources, the source of the deposits held in the country, and international sources of capital to support other long-term contribution.

To fund the low income housing loans, the company will follow the 2 forms is re mortgage loan and buy back the debt at low income mortgage loans from commercial banks.

Accordingly, the objects of social housing policy is with the revolution, have difficult circumstances; the households were poor rural areas have yet to take home mortgages and have income from 4.8 million back down; low income people in urban areas and a number of other objects such as employees, students, the disabled ...

Term of the loan can last from 15 to 30 years depending on the specific circumstances, conditions and with preferential interest rate is lower than commercial interest rates on the market.

So, if entered, this company will focus on mortgage refinancing funding for low income housing market with capital of about 50,000 billion in five years, corresponding to about 250,000 homes or 7.5 million square meters of low income housing.

Mr Ha said, in the process of preparing the first time and when the new mortgage home company goes into operation, the BANK is ready to join the fast company to support operations, efficiency and stability.

Besides, to implement resolution 01 and 02 of the Government on the implementation of a number of solutions for difficult disassembly production business, market support, resolve the bad debt, in the period 2013-2015, the BANK is expected to spend about 30,000 billion to support for mortgage lenders to the real estate business.

Refinancing home mortgage supported by banks with nearly 330 billion

5 bank receiving refinancing mortgage including Vietcombank, BIDV, VietinBank, MHB and Agribank. In it, the BANK was refinancing the most with more than 130 billion, while FINANCIAL is 646 million.

On 20/10/2014, State Bank of Vietnam (SBV) has informed about the refinance home mortgage in March 2014.

The resulting base housing assistance loan to the end of March, 2014 and suggested the refinancing mortgage of commercial banks, SME approval refinance home loans at the end of March, 2014.

Bank for investment and development of Vietnam (BIDV-BEED code): outstanding loans for housing support to 30/9/2014 is 1,384 billion; The total amount of refinance has informed the Bank is 1,253 billion; Refinancing amount in September 2014 is 130.5 billion.

Bank for foreign trade of Vietnam (Vietcombank-code VCB): outstanding loans from mortgage lenders for housing support to 30/9/2014 is 676.7 billion; The total amount of refinance has announced the Bank was 600.6 billion; Refinancing amount in September 2014 is 76 billion.

Vietnam industrial and commercial bank (Vietinbank-CTG): outstanding loans for housing support to 30/9/2014 was 892.6 billion; The total amount of refinance has informed the Bank is 788 billion; Refinancing mortgage amount in September 2014 is 104.3 billion.

Bank for agriculture and rural development of Vietnam (Agribank): outstanding loans for housing support to 30/9/2014 is 299.9 billion; The total amount of refinance home mortgage has informed the Bank is 284 billion; Refinancing amount in September 2014 is 15.6 billion.

Housing Development Bank of Mekong Delta (MHB): outstanding loans for housing support to 30/9/2014 is 44.8 billion; The total amount of refinance a mortgage has informed the Bank is 44.2 billion; Refinancing amount in September 2014 is 647 million.

Mortgage refinancing by special bonds for some banks

The Bank will be refinancing loan money plain VAMC's special bond with the duration of 6 months with the interest rate from refinance home mortgage around 4.5% per year.

The State Bank has just decided to refinance mortgage for some commercial banks by special bonds of property management company of the credit institutions in Vietnam (VAMC) to support active capital for credit institutions in the process of handling bad debt.

A number of commercial banks will be refinancing loan money plain VAMC's special bond with the duration of 6 months, the interest rate at about 4.5% annually, discounted by 50% of the face value of the bonds. This means that if the mortgage bank by 1,000 billion face value of bonds in particular are borrowed 500 billion.

Currently VAMC received quite a lot of refinancing mortgage loans suggested by special bonds of banks based in Hanoi and the South. According to Hung-VAMC President said they would be willing to meet legitimate proposal of the credit organization.

Hung also said more banks will be refinancing loans by special bonds differently depending on home mortgage refinance the condition of individual banks, based on monetary policy, the balance money supply and can attached the condition that Bank must collect about how.

Earlier in the circular 20/2013, the State Bank has stipulated, refinancing rates for credit institutions will be based on the basis of special bonds face value due to State Bank Governor decided based on the goal of monetary policy, the operating results of extract formed reserve mortgage information risks for special bonds and bad debt processing results but not exceeding 70% in comparison with the denomination of special bonds.

Refinancing mortgage interest rate for credit institutions by the Prime Minister to decide in each period. Refinancing interest overdue by 150% refinancing interest rate credited on credit contracts between State Bank and credit institutions. The term refinance under 12 months but not exceeding the remainder of the term of special bonds.

Although the State Bank allowed commercial banks are refinancing loan from the VAMC's special bond from long, however to date needs refinancing mortgage by the new VAMC bonds arises.

According to the World Bank by this point, some banks lack liquidity locally plus the speed of credit flows to the market rise sharply should make new commercial banks arise needs refinancing  a mortgage with bonds VAMC.