Regulatory Alerts2022-10-06
Proper Conduct of Banking Business Directive No. 329B on Sale of Housing Loans
The Bank of Israel issued Directive No. 329B to regulate the sale of housing loan portfolios and collaborations in extending such loans by banking corporations. The directive prohibits cherry-picking loans, mandates that banks retain at least 10 percent of each sold loan, and limits total sales to 10 percent of the housing loan portfolio balance. It further requires borrower consent, ensures protections for borrowers' rights are maintained, and demands legal and accounting opinions to confirm the transaction constitutes a true sale.
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