Funding
• Reverse Mortgage (RM) Programme: RM enables senior home owners to convert their home equity in exchange for a steady stream of monthly income and provides a form of social security to the elderly home owners for retirement. • Cagamas’ sister company, Cagamas SRP Berhad (CSRP). - 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 |
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| 6 | Risk sharing (if appropriate) | SSB / SSB i: The product is non recourse. Borrowers and their estate bear no shortfall risk; if the property sale proceeds are insufficient to settle the outstanding loan, the loss is absorbed entirely by Cagamas. Any excess proceeds are returned to the estate. | |
| 7 | Other Comments | N/A |
| Any further comments/information? |