The Concept of Special Escrow Accounts to Improve Mortgage Housing Loans in Russia
Purpose: The article aims to identify and evaluate the key determinants of improving mortgage lending in Russia. Increasing the participation of financial institutions in the application of escrow accounts is of paramount importance in terms of fine-tuning the process of improving mortgage lending in Russia. Design/Methodology/Approach: In order to further improve housing mortgage lending, it seems necessary: firstly, to identify new opportunities that contribute to the development of a system of interaction between credit and financial organizations and borrowers in terms of using the innovative functions of escrow accounts; secondly, to highlight the functions, during the application of which the increase in the efficiency of the escrow account mechanism will be optimal; thirdly, to formulate recommendations on the implementation of the necessary changes in the process of applying escrow accounts, taking into account the peculiarities of mortgage lending in Russia. Findings: To fully take into account the potential impact of special escrow accounts on the process of interaction between the lender and the borrower, an additional escrow account functionality was developed, aimed at improving mortgage lending. Practical Implications: The results of the study can be put into practice in order to expand the range of escrow account functions used in the process of mortgage lending in Russia. Originality/Value: The main contribution of this study is the emphasis on the need to introduce innovative approaches to increase the functionality of escrow accounts used in the process of mortgage lending in Russia.