Funding
Purchase Without Recourse (PWOR): Cagamas purchases eligible portfolios of loans and financing on a without recourse basis to the seller institution, and Cagamas assumes all credit risks to free up capital and rebalance portfolio risk. - Malaysia
| 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. | |
| 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. | |
| 3 | Brief description of structure for each | As above | |
| 4 | Fees / pricing structure | Pricing is done in accordance with the pricing framework approved by the Board. | |
| 5 | Servicing |
PWR / PWOR: Primary lenders typically continue servicing the underlying loans after sale (industry standard). Conventional Products | Cagamas Berhad |
|
| 6 | Risk sharing (if appropriate) | PWOR: Cagamas assumes the full credit risk with no recourse to the seller institution. | |
| 7 | Other Comments | N/A |
| Any further comments/information? |