| 1 |
Funding /risk transfer / both |
Cagamas issues bonds and sukuk and mortgage-backed securities to finance the purchase of housing mortgages and other consumer receivables for conventional loans and Islamic financing. Cagamas purchases eligible portfolios of loans and financing from the FIs and selected corporations on a recourse basis, as well as without recourse basis.
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| 2 |
Eligible assets |
Housing loans, Islamic home financing, hire purchase financing, personal financing, and other receivables from FIs and selected corporations that meet Cagamas’ Eligibility Criteria.
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| 3 |
Brief description of structure for each |
As above
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| 4 |
Fees / pricing structure |
Pricing is done in accordance with the pricing framework approved by the Board.
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| 5 |
Servicing |
Primary lenders typically continue servicing the underlying loans after sale (industry standard).
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| 6 |
Risk sharing (if appropriate) |
The seller retains risk. Cagamas has recourse to the seller, who must repurchase defective loans and may be required to repurchase the loan pool at maturity.
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| 7 |
Other Comments |
N/A
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