OREANDA-NEWS. April 18, 2012. To foster further development of Russian mortgage and housing market and mortgage securities market the Management Board of Agency for Housing Mortgage Lending (AHML) approved Program No.3 to purchase mortgage-backed bonds. The total cost of the Program is 20 bln Rubles. The Agency sets up the bonds purchase period from April 1, 2013 through December 27, 2013.

Considering lack of market demand for securitization of floating-rate mortgage loans and insignificant share of foreign currency mortgage, the AHML Program provides for establishing fixed coupon rates for a mortgage-backed bond with mortgage loans in RF currency only. With this, similar to the previous program, the general pricing policy and independent choice of the issue parameters by participants remains unchanged.

To make it easier for participants the Program more thoroughly describes the bridge financing procedure to the originator and the mortgage agent and as well as specifies the minimum mortgage parameters which the Agency is willing to accept as a secured loan when providing bridge financing.

To extend and attract new participants the Program keeps preferences for debut deals by lowering the cost of bridge financing.

To additionally guarantee that deals are closed the Program outlines new requirements for the organizer and introduces an option to act with a co-organizer. The target of a co-organizer is to support the organizer to structure the deal, to prepare documents, and address other aspects specific to the mortgage securities. This will allow organizers inexperienced in securitization deals to complete securitization deals. The AHML may act as a co-organizer.