Funding
PMRC refinance product is based on refinance with recourse model. Prefinance option is available for financial institutions that do not have an existing mortgage loan portfolio however intend to enter into housing finance market. - Pakistan
| 1 | Funding /risk transfer / both | PMRC provides funding to Partner Financial Institutions (PFIs), who takes the risk of mortgage to consumers. | |
| 2 | Eligible assets | Eligible collateral for PMRC loans includes mortgage portfolios of PFIs, Government Securities, hypothecation on assets of PFIs and lien on Bank accounts | |
| 3 | Brief description of structure for each | PMRC raises funds and lends to Primary Mortgage Lenders at a discount | |
| 4 | Fees / pricing structure | The benchmark for pricing is PKRV / KIBOR based on relevant tenor and margin/discounts as approved by Asset Liability Committee | |
| 5 | Servicing | The loans are serviced by PMLs | |
| 6 | Risk sharing (if appropriate) |
Risk against mortgage to consumers are assumed by PFIs. PMRC is acting as a Trustee of CGT providing guarantees to cover credit loss of PFIs |
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| 7 | Other Comments | None |
| Any further comments/information? |