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Putin Pins Housing Hopes on Mortgage Factory Modeled on U.S.

  • Government to back, securitize mortgages to boost housing
  • VTB to test program with 50 billion-ruble issue this quarter
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Photographer: Andrey Rudakov/Bloomberg
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Vladimir Putin is taking a page from the U.S. housing market to boost home ownership. Call it Russia’s Fannie Mae.

The government last year set up a so-called mortgage factory to help lenders bundle home loans with state backing in a one-stop shop. On Wednesday Sberbank PJSC signed a 50 billion-ruble ($890 million) deal using the new mechanism, marking the country’s biggest-ever issue of mortgage-backed securities.