2 days Workshop on Affordable Housing Finance

Transcription

1 2 days Workshop on Affordable Housing Finance 3 rd and 4 th March, 2017 Mumbai Tentative Venue: The Lalit, Mumbai

2 Course Outline Day 1 Overview of Housing Finance in India Main players in housing finance in India the share of banks and HFCs Regulatory framework What is affordable housing finance Different regulatory and industry definitions Affordable housing finance the current scenario Regulations for housing finance companies in India Basic law of mortgage lending Who all can carry housing finance business? NHB regulations Meaning of Housing finance companies and NBFCs Meaning of micro mortgage finance companies Capital and prudential regulations Operational controls on housing finance companies What can housing finance companies do and cannot Law of mortgages Creation of equitable mortgages and different forms of mortgages Understanding of the law of mortgages; distinction between mortgages and charges Rights and obligations of the mortgagor Rights and obligations of the mortgagee

3 Course Outline Day 1 Foreclosure process International law on foreclosure of mortgages Forthcoming land titling law and impact on mortgage market Stamp duties on mortgages Refinancing options in housing finance Depository companies Traditional balance sheet credits NHB refinancing Securitisation options Portfolio assignments Evaluating securitisation in housing finance Is securitization worthwhile for housing finance companies? Structuring of securitisation to minimize weighted average cost Securitisation and traditional balance-sheet financing methods Issues in securitisation of housing finance receivable Alternative securitisation options synthetic securitization and covered bonds Case studies on affordable housing models in other countries

4 Course Outline Day 2 Basics of mortgage lending Special features of mortgage lending product Asset-backed funding Funding based on regular income of the household Relevance of LTV ratio and D/I ratio Long-term nature Designing a suitable product for affordable housing finance sector Process of mortgage lending: Assessment of the need of the borrower Appraisal of the cost of the property Title investigations, etc. Credit evaluation of the borrower Legal documentation Conclusion Credit Risk and pricing of mortgages Understanding of risk Importance and relevance of credit risk in housing finance Understanding the credit risk of the borrower Pricing of mortgages:

5 Course Outline Day 2 Cost of capital Risk premium Cost of overheads Structuring of mortgages Understanding mortgage amortization Restructuring Prepayment of mortgages and prepayment penalties Dealing with NPAs Concept of NPAs Effects of NPAs Categorization of Defaulters Steps involved in Recovery Execution of Recovery Process Case Studies New and Emerging Developments in Housing Finance Credit Information Bureaus Mortgage Guarantee Technology Changes in the recent budget

6 Mr. Vinod Kothari Qualification: Company Secretary, Chartered Accountant About Mr. Vinod Kothari Mr. Vinod Kothari is internationally recognized as an author, trainer and consultant on financial as well as corporate subjects. His command in subjects of finance like leasing, housing finance, securitisation, credit derivatives, accounting for financial instruments, etc. is unquestionable. His lectures are sought all over the world. The locations where he has lectured on these subjects include New York, Washington, London, Milan, Frankfurt, Singapore, Hong Kong, Sydney, Colombia (South America), South Africa, Malaysia, Jordan, Dubai, Kuwait, Egypt, Sri Lanka, Bangladesh, etc. Mr. Kothari with his efficient team has handled very diverse groups from rating agency professionals in Malaysia, to group of investors in Sydney, to tax officers in South Africa, to group of lawyers in India, to executives of the World s largest securitisation agency in Washington, to a group of quants in New York. He is renowned for offering services to a number of listed companies which not only include advisory or consultancy related services or conduct of due diligences, but also litigation related services. Mr. Kothari has had the opportunity to serve as the Chairman of the Institute of Company Secretaries of India Eastern India Regional Council, Calcutta. In 1987, a voluntary organisation of Calcutta chose him as the Outstanding Young Person of Calcutta in the field of Finance and Taxation. He is also one of the editors of the Ramaiya's Company Law, a tome on company law and an unquestionable source of authority on the subject. He also has a vast experience in working with the various regulators like SEBI, NHB and Government of India and multilateral organisations like IFC and ADB.

7 Consulting Assignments: He is the forerunner of Vinod Kothari & Company, practicing company secretaries, which is a renowned named in the field of corporate laws. Details can be viewed at: Director of Indian Securitisation Foundation, a representative body of the securitisation industry in India promoting capital market instruments in India. He carried out a study on covered bonds in India for the Asian Development Bank. He was been retained by the Asian Development Bank, Manila for two important projects: to advise the Govt. of India on reforming secured lending law in India; and to develop securitisation-related legal framework in the Asian region. Is the Director of Indian Securitisation Foundation, an industry forum for securitization in India Claims extensive consulting experience in securitisation offering comprehensive securitisation-related consulting services to a variety of clients including originators, investors, IT companies, etc, apart from one-off services to several companies in different countries. He was an integral part in developing a toolkit for the IFC titled India Toolkit for Low Income Housing Finance A Practitioner s Guide prepared in collaboration with Habitat for Humanity. He was sub-consultant to Affordable Housing Finance Project of IFC, awarded to IMaCS. He was retained by the National Housing Bank for assisting them in promoting Covered Bonds in India. He was a part of Working Committee formulated by National Housing Bank for promoting capital market instruments such as RMBS and Covered Bonds for the housing sector in India. He was been retained by Govt. of Jordan for suggesting and working on funding for a high-profile low-cost housing project. Author of Books: Securitisation: The Financial Instrument of the Future, Fifth edition Securitisation, Asset Reconstruction and Enforcement of Security Interests, Fourth Edition, 2013 Introduction to Securitization (co-authored with Frank J. Fabozzi) Guide to Structured Finance, 2014 Edition

8 Corporate Boards, Committees and Policies under the Companies Act Guide to Independent Directors, 2014 Editio Understanding Companies Act 2013, 2014 Edition Author of 3 Chapters in Handbook of Finance, (editor Frank Fabozzi), published by Wiley, USA. Led a team of 17 specialist editors for the latest edition of Guide to the Companies Act, A. Ramaiya, 18th Edition. Prepared the key highlights and reference tables for Corporate Laws second edition and The Companies Act, 2013 published by Lexis Nexis Guide to Housing Finance A comprehensive guide to mortgage lending, 2013 Edition Taxation of Lease Transactions in India, co-authored by Sikha Bansal, 2013 Lease Financing and Hire Purchase, Fourth Edition, Credit Derivatives and Structured Credit Trading, 2009 Edition Lecturing: He is a visiting faculty at Indian Institute of Management, Joka, Calcutta for several years, teaching a full fledged course for the final year students on Structured Finance and Taxation. Over 125 students sign up of the course every year. He is a guest faculty at the National University of Juridical Sciences- the subject taught here are insolvency and credit interest enforcement laws in India and other countries. The course included a comparative study of the insolvency and creditors' rights in USA, UK and Australia. Articles: Vinod Kothari's articles on asset-based finance, securitisation etc. have appeared in several national and international journals including Duke Journal of Comparative International Law (USA), US Banker (USA), Export trader (Spain), Trade and Forfaiting Review (UK), Journal of International Banking Law and Regulation (UK), Equipment Finance Journal (USA), Monitor daily (USA),Analyst (India), etc.

9 Satish was the founding Managing Director of CIBIL, India s first credit information bureau a joint venture between Housing Development Finance Corporation (HDFC), State Bank of India, Transunion and Dun & Bradstreet. Mr. Satish Mehta Founder & Director Athena Partners Satish s experience spanning over 33 years in the areas of housing finance, consumer finance, business development, training, credit information and management consultancy has resulted in the creation of India s first credit bureau CIBIL, India s first private sector mortgage lending institution HDFC and he has extended invaluable expertise to the fledgling financial infrastructures of countries in South Asia and the Middle East. Prior to founding Athena Partners, Satish worked with the Quantum Group (CEO), Dun & Bradstreet Dubai (President Financial Infrastructure & Credit Bureaus), Credit Information Bureau (India) Ltd CIBIL (MD) and HDFC (General Manager). His expertise has been used in various countries, which were in the process of developing their financial infrastructure. Specifically, he successfully headed the team that provided the technical knowhow for credit bureaus in UAE, Egypt, Sri Lanka and Bhutan.

10 Prior to his responsibilities at CIBIL, Satish was General Manager Business Development, at HDFC and was involved in various functions including business development, training, knowledge creation, consulting advisory services, due diligence for investments, entry strategies, projects for multi-lateral agencies, operational management and human resource management. An additional responsibility was to manage the diligence and valuation leading to the investment by HDFC in housing finance companies in India, Sri Lanka and Bangladesh and was on the Board of Directors of the Sri Lankan venture for a period of four years. Satish was responsible for the training and business development functions there. He was also responsible for HDFC s initial foray in to education loans. He was responsible for the business plan and joint venture that HDFC started with GE USA. The joint venture, Countrywide consumer finance was in the business of giving consumer loans pan India. In addition, Satish has worked closely as a consultant, delegate, faculty member with a number of international organisations like the International Finance Corporation (IFC) in Nepal, World Bank in Indonesia, Bank of Housing and Construction and Home Finance Company Limited in Ghana, Building Societies Institute in Australia, National Mortgage Institute in Fairfield, USA, The Building Societies Association, UK and GE Capital Corporation, USA. Satish has consulted to the World Bank Group and IFC for credit bureau related assignments. Specifically he reviewed the legal environment for Credit Reporting Systems in Botswana (Africa) and did an evaluation of the Credit Information Systems being developed in Central Asia and Sub Saharan Africa. He was also the external credit bureau expert for the MENA Guide on Credit Reporting Systems in the Arab world a project for IFC and the Arab Monetary Fund. He was a consultant to ADB and monitored the upgradation of the technical infrastructure of the Credit Bureau in Bhutan. In the Housing finance space, Mr. Mehta has done work for a large Public Sector Bank, a housing finance company and a few NBFCs in terms of establishment, review and re-engineering their operations, policies and processes. He has also done work that involved conducting feasibility study for setting up of an HFC in Bhutan. By qualification he is a Chartered Accountant and a Graduate in Science with specialisation in statistics and economics.

11 , 175 Shreyas Chambers, D.N. Road, Fort, Mumbai Ms. Deepa Devi / Ms Niddhi Parmar deepa@vinodkothari.com / parmar@vinodkothari.com Contact Us , Krishna Building, 224 AJC Bose Road, Kolkata Ms. Kirti Sharma trupti@vinodkothari.com A-11, Hauz Khas, (opp. Vatika Medicare) New Delhi / /