Regulatory Alerts2022-10-06
Sale of Housing Loans and Collaborations in Extending Housing Loans
The Supervisor of Banks issued this directive to regulate the sale and syndication of housing loans by banking corporations, aiming to manage risks while maintaining financial system stability. The rules prohibit cherry-picking loans, mandate a 10 percent risk retention by the seller, and require borrower consent and notification to protect consumer rights. Additionally, the directive sets limits on transaction scope, requires true sale documentation, and restricts the seller's role to that of a service provider.
Share