You're reading: SMI to decide on refinancing of mortgage credits with extracts from state register

The State Mortgage Institution (SMI) will consider proposals of banks-creditors on the refinancing of mortgage credits with extracts from the state register of ownership rights to property, reads a press release of the SMI.

“According to the amendments to the SMI standards, the proposals of primary banks-creditors on the refinancing of mortgage credits will be considered if the endorsed copies of property registry deeds and extracts from the state register of ownership rights to property are submitted to the SMI,” reads the report, citing the head of the public relations department at the SMI, Hanna Volobueva.

The report also says that when the SMI signs agreements on the assignment of claims to mortgage credits with primary banks-creditors and endorses them at notaries under the SMI’s application, the assignment of claims under mortgage agreements are registered in the state register of ownership rights to property: the change of the mortgage holder from the primary bank-creditor to the SMI is registered.

“We draw your attention that instead of the list of documents recommended by the SMI, which are to be submitted for the credit case, the amendments to the SMI standards set the minimum list of documents, which are to be submitted by banks to define the correspondence of mortgage credits to the SMI standards,” she added.

The State Mortgage Institution of Ukraine was created in October 2004. The main goal of its activities is refinancing primary mortgage lenders by obtaining the right of claim to mortgage loans.

Earlier the SMI refinanced banks at 11% per annum. The credits were issued to the public for 5-30 years with an interest rate of no more than 15% per annum in hryvnias. The average credit rate for the SMI’s portfolio is 13.66% per annum.