Regulatory Alerts2017-09-21
Adjustable-Rate Real Estate Finance Products of Retail Consumers
The Saudi Central Bank (SAMA) issued this circular to real estate financiers and financing companies, mandating immediate due care measures for retail customers affected by monthly installment increases in adjustable-rate real estate finance products. Financiers must appoint qualified specialists to explain product features, pricing mechanisms, and contract terms, while offering customers options such as converting to fixed-rate agreements, restructuring debt, or transferring to another financier without additional administrative fees. To ensure compliance, affected institutions must submit a detailed report listing all impacted retail customers from 2016 and 2017, along with individual resolutions, within ten working days of the circular's issuance.