Government-insured mortgage loans in Russia face high default rates.
The study looked at how loans from a Russian government mortgage provider are handled. They found that loans with insurance had higher default rates, showing that the system for checking creditworthiness of borrowers isn't working well. By analyzing data on loans issued by one regional provider, they discovered that insured loans had different risk levels compared to uninsured ones. This means that the way loans are insured can affect how likely they are to be paid back on time.