Mortgage loans with oral confirmation. Theory.
1. Which banks today accept oral confirmation of the borrower's income? In which case they go for it, and how does this change the terms of credit for the client? Which banks openly advertise such a policy? What kind of "can you agree"?
The overwhelming majority of banks, when advertising "the lack of certificates of income" or "verbal confirmation of income", does not mean that they have enough from a borrower of a passport and honest eyes. Anyway, you need official employment and a certificate in the form of 2 personal income tax at least for the minimum amount. The conditions for issuing a loan are quite standard, because the readiness to consider verbal confirmation of income does not mean, of course, 100% probability of approval of the borrower with such income. That is, all the same, documents are needed, so that there is something to put in the credit file and so on which documents to evaluate solvency.
I know two banks that are ready to issue it “under a passport”, these are not banks from the first hundred and they occupy their small niche in the mortgage market, issuing very few loans at 18% in dollars. We at EasyCredit work with them, but their name is a trade secret, unfortunately.
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2. How has the number of such banks changed during the year? Is there a tendency to increase loyalty?
There are new banks that are ready to consider and take into account indirect evidence of income - such as expenses, expensive assets, and so on. Some banks have a high percentage of approval. But a bank that is really ready for a long time, and not just for the rapid accumulation of a loan portfolio, and fortunately does not give out “under a passport”. Because the example of the current crisis in the US can be seen, what causes the rate on loans for unreliable borrowers.
3. Are there now banks that are ready under any conditions to credit borrowers with unstable income - freelancers, people of creative professions?
Again, depending on how they can confirm income. If the artist is in the union of artists, he has an account on which money from the sale of paintings is regularly received and he has assets (car, cottage
itp), confirming that he earns something, then this artist can, in general, get a loan at 11-13.5% in dollars. And if he is an “unrecognized genius” who receives money only from a philanthropist, then the interest rate will be 18% in dollars.
4. Which banks are now ready to allow borrowers to understate the value of real estate in the contract? How does this affect the terms of lending? According to what scheme are these transactions carried out in order to minimize the risks of the bank in the event of a borrower's default?
The rate, as a rule, does not affect in any way, but additional fees for extradition may slightly increase. The cost reduction scheme in the contract of sale is simple enough, the real cost of the apartment is divided into two parts: 1 million "costs" an apartment, and everything else is "worth" inseparable improvements. Ie, roughly speaking, it passes as payment for finishing. There is no need to talk about the risks of the bank here, these are the risks more likely of the borrower - he should be explained to the tax authorities if anything happens and not to the bank. But there is no risk of the bank here, because, firstly, in case of a default, the bank knows from the appraiser's report how much the apartment costs on bail, and, secondly, in case of loss of property rights and other insurance cases by the borrower insurance for the amount of debt.
5. How much, by your estimates, do lenders' risks increase with each of the listed relief measures?
Again, there are no such banks now that would massively issue loans to borrowers without proof of income. There is Moskommerts, in which, on sensations, the percentage of approval is significantly higher than that of others, but they will pick up the portfolio they need and tighten the screws, I suppose. And in other cases, when considering borrowers with formal employment, but with oral confirmation of income, the solvency assessment procedure completely minimizes the risks, and even when considering
indirectly confirmed income, too.
The overwhelming majority of banks, when advertising "the lack of certificates of income" or "verbal confirmation of income", does not mean that they have enough from a borrower of a passport and honest eyes. Anyway, you need official employment and a certificate in the form of 2 personal income tax at least for the minimum amount. The conditions for issuing a loan are quite standard, because the readiness to consider verbal confirmation of income does not mean, of course, 100% probability of approval of the borrower with such income. That is, all the same, documents are needed, so that there is something to put in the credit file and so on which documents to evaluate solvency.
I know two banks that are ready to issue it “under a passport”, these are not banks from the first hundred and they occupy their small niche in the mortgage market, issuing very few loans at 18% in dollars. We at EasyCredit work with them, but their name is a trade secret, unfortunately.
')
2. How has the number of such banks changed during the year? Is there a tendency to increase loyalty?
There are new banks that are ready to consider and take into account indirect evidence of income - such as expenses, expensive assets, and so on. Some banks have a high percentage of approval. But a bank that is really ready for a long time, and not just for the rapid accumulation of a loan portfolio, and fortunately does not give out “under a passport”. Because the example of the current crisis in the US can be seen, what causes the rate on loans for unreliable borrowers.
3. Are there now banks that are ready under any conditions to credit borrowers with unstable income - freelancers, people of creative professions?
Again, depending on how they can confirm income. If the artist is in the union of artists, he has an account on which money from the sale of paintings is regularly received and he has assets (car, cottage
itp), confirming that he earns something, then this artist can, in general, get a loan at 11-13.5% in dollars. And if he is an “unrecognized genius” who receives money only from a philanthropist, then the interest rate will be 18% in dollars.
4. Which banks are now ready to allow borrowers to understate the value of real estate in the contract? How does this affect the terms of lending? According to what scheme are these transactions carried out in order to minimize the risks of the bank in the event of a borrower's default?
The rate, as a rule, does not affect in any way, but additional fees for extradition may slightly increase. The cost reduction scheme in the contract of sale is simple enough, the real cost of the apartment is divided into two parts: 1 million "costs" an apartment, and everything else is "worth" inseparable improvements. Ie, roughly speaking, it passes as payment for finishing. There is no need to talk about the risks of the bank here, these are the risks more likely of the borrower - he should be explained to the tax authorities if anything happens and not to the bank. But there is no risk of the bank here, because, firstly, in case of a default, the bank knows from the appraiser's report how much the apartment costs on bail, and, secondly, in case of loss of property rights and other insurance cases by the borrower insurance for the amount of debt.
5. How much, by your estimates, do lenders' risks increase with each of the listed relief measures?
Again, there are no such banks now that would massively issue loans to borrowers without proof of income. There is Moskommerts, in which, on sensations, the percentage of approval is significantly higher than that of others, but they will pick up the portfolio they need and tighten the screws, I suppose. And in other cases, when considering borrowers with formal employment, but with oral confirmation of income, the solvency assessment procedure completely minimizes the risks, and even when considering
indirectly confirmed income, too.
Source: https://habr.com/ru/post/5832/
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