It is funding the developer increased risk for the bank.

It is funding the developer increased risk for the bank.

Banks actively lend to real estate investors, so they bought an apartment from the developer, becoming participants of shared construction.
But few banks have issued loans for the construction of apartment buildings directly to developers.
Why is this happening?
What are the risks they see banks in financing real estate developers?
What additional risks occur in connection with a possible ban of shared construction? (It turned out to be a topical theme as possible ban of shared construction discussed at the level of the Government of the Russian Federation).

Portal Ipotek.ru Ask the Expert: What are the risks they see banks in financing the construction?


Dmitry Ovsyannikov, director of "mortgage. RU "marked one of the major risks:" When a bank loans to developers, there is always the risk that the apartment in a newly built house can not find a buyer, for example, due to the fact that the house was poorly located. The developer may go bankrupt and then the unfinished house is on the balance sheet of the bank and the bank will have to think about making it as something completed and sell apartments. "

Also Lyudmila Tsvetkova, CFO of "MIEL-Residential Real Estate" drew parallels between the bank and the developer: "The main risk to the bank's risk is similar to the main developer (in the case of the prohibition of share construction) and is postponing terms of raising funds.
For developers postponed the deadline for receipt of funds from co-investors, which leads to problems with covering credit obligations to the bank. Depending on the size of the building and as defined stages of construction, the deadline for the builder will be extended for one or two years.
That is, only after at least one year since the start of the project, the developer will start to receive the first funds.
This is at best. In more complex situations, the beginning of the cash flow can move away for 2-3 years. "

Ponomarev and Emma Sophia Lebedev identified various possible threats to ban banks in share construction.

According to Emma Ponomareva, director of retail operations "Investtradebank": "The main risk - reducing demand, leading to a drop in revenue of developers and the emergence of complexity to the execution of existing credit obligations."
But Sophia Lebedev, CEO "MIEL Development" sounded different: "Naturally, the main risk for the bank is a credit default due to the deterioration of the situation of the developer and its subsequent possible bankruptcy."

The opinions skyrocket risks for banks, if they are to finance developers, not to give money to end users - real estate investors, shared Dmitry Ovsyannikov: "The more risk seeing the bank in financing of these projects, the higher the interest rate on loans: increased risks laid in a bid. The interest rate on mortgage loans to the population - one, and loan business - different: much higher.
That is, the developer financing, bank, judging by the rate at which the loan issue, sees more risks than financing the final consumer. "

The risks that can result in an advantage Sophia told Lebedev, CEO "Miel New": "Along with the increase in risk for banks will rise and risks for developers are commonplace due to the fact that housing will not be sold.
This risk can lead to withdrawal from the market of a certain part of the developers, the beginning of the process of mergers and acquisitions, and then even to monopolize the market the largest group of developers.
And for the banking sector, this situation may even become an advantage. Have proven, reliable builders reduces the risks of the bank. This is the first. Second - it makes it possible to optimize the internal structure. For example, to produce a reduction of the mortgage department with a simultaneous increase in corporate lending department, including the expansion of state investment analysts, appraisers, etc. specialists.
It may also be developed mutual partnership of the bank and the developer regarding the use of barter. Given the fact that the sale of the apartments in the new bank is easier than to contact individuals and selling second homes (for debt), the credit institution receives on hands quickly turns into an asset. "

Dmitry Charikov, head of the Department for Control over the observance of legality in the sphere of housing construction the Committee of the Federation Council of the Russian Federation expressed his views on the possible situation under the prohibition of share construction, banking and finance: "I believe that the coming redistribution of construction market, and believe that the engagement of banks in initiatives related to the abolition of share building, visible to the naked eye. The most desired option for bankers - to build a vicious cycle where the money leaving the bank for the construction or in the form of mortgages, immediately returned to the bank. But for this, you must first destroy the existing mechanism, which, it seems, and launched. "