The law enables cost reduction and time savings in the mortgage lending market.
During the second plenary session of the Senate, the Law "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Further Development of the Mortgage Lending Market" was reviewed.
This Law introduces amendments and additions to the laws "On Mortgage," "On the Securities Market," and "On Insolvency," thereby improving the processes of securing rights under mortgage agreements and their registration and transfer to third parties.
It was noted that currently the registering authority requires the participation of parties in the mortgage registration process, as well as the direct appeal of applicants to the registering authority (cadastre). This creates significant difficulties in cases where the number of mortgages increases.
Therefore, the registration of mortgages will be established online or through visits to public service centers, and the concept of electronic mortgages will be implemented. This, in turn, allows for a reduction in costs and saves time.
Moreover, the Law provides for the introduction of a mechanism to further attract resources for mortgage refinancing organizations from the capital market through the issuance of bonds that exceed the value of their own capital.
Senators noted that the Law contributes to the further development of mortgage securities circulation, creates new opportunities for refinancing mortgage loans, and facilitates the formation of a modern market system for mortgage lending.
After discussions, the Law was approved by the senators.