Regulatory Alerts2025-03-09
Allowing the Saudi Real Estate Refinance Company to Purchase Residential Mortgage Portfolios from Real Estate Financiers after a Minimum of One Month from the Date of Granting the Financing Related to those Assets
Saudi Central Bank (SAMA) has issued a circular amending its previous directive to reduce the minimum holding period for the Saudi Real Estate Refinance Company (SREFC) when purchasing residential mortgage portfolios from real estate financiers from three months to one month, or one month after receiving the first installment from the beneficiary, whichever is later. The updated regulation maintains a six-month recourse period against financiers and applies to all banks, operating subsidiaries, and financing companies across the Kingdom effective immediately. This adjustment streamlines portfolio acquisitions while preserving regulatory oversight over asset-backed financing transactions.
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