Regulatory Alerts2019-06-16
Allowing the Saudi Real Estate Refinance Company to Purchase Residential Mortgage Portfolios from Real Estate Financiers after a Minimum of Three Months from the Date of Granting the Financing Related to those Assets
The Saudi Central Bank issued a circular authorizing the Saudi Real Estate Refinance Company to purchase residential mortgage portfolios from real estate financiers, provided at least three months have passed since the financing was granted or the first beneficiary installment was received, whichever is later. This regulatory exemption permits the company to dispose of these assets without adhering to standard financing asset disposal rules, while maintaining a six-month recourse right against the original financier. The directive takes immediate effect and applies to all banks and financing companies operating within the Kingdom.
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