OREANDA-NEWS. May 12, 2012. AHML (the Agency for Housing Mortgage Lending) Supervisory Board’s meeting was held to bottomline AHML Group’s 2011 results. The Supervisory Board members approved the annual report and the business plan performance report for the Group companies, and discussed several issues related to the operations.

In 2011, the Agency refinanced 40,225 mortgage loans for 51.6 bn rubles. The Agency kept the lowest average repo rate – of 10.93% (according to the Bank of Russia, as of 01.01.2012, the average market mortgage rate in 2011 was 11.9%).

As part of the Russian Government’s Resolutions program aimed at providing more access to mortgage lending and maintaining the demand, along with typical lending products, the Agency actively developed special mortgage programs for individual categories of people (Military Mortgage, Maternity Capital, Mortgage for Young Scientists).

According to consolidated IFRS report, the AHML Group’s net profit amounted to 7.97 bn rubles in 2011, which is 9.8% higher than in the previous year.

In 2011, the banks got more interested in AHML’s programs aimed at developing the mortgage-backed securities market. In 2011, AHML implemented two programs for 23.58 bn rubles to acquire mortgage bonds, and participated in initial placement of three emissions of mortgage securities for the amount of 3.75 bn rubles. Independently, the Agency carried out two securitization transactions for the total of 20.3 bn rubles, those emissions account for 44% of the total mortgage securitization transaction amount in the Russian Federation in 2011.

In addition, credit organizations expressed more interest in participating in AHML’s stimulation program for home construction lending (Stimul program). Under the Stimul Program in 2011, the Agency assumed obligations under 164 funding agreements for 53.9 bn rubles (the construction of 2.5 mn sq. m), including loans to banks for 15.3 bn rubles.

AHML Insurance Company showed a positive trend in 2011; it increased to 89 the number of partner credit organizations that provided loans in 2011 with the borrower liability insurance.

The meeting provisionally approved the amendments to JSC AHML’s Articles of Incorporation and the Provision on OJSC AHML’s Governing Bodies. Due to changes in the current legislation, some amendments need to be made to reach consistency, other amendments are aimed at extending the Agency’s core operations, including risk mitigation at the mortgage lending market and developing various home market segment.