Regulatory Alerts2017-03-08
Acquisition of Real Estate Finance Assets or Rights Arising from Mortgage Finance Companies
The Arab Monetary Fund has issued a circular permitting banks and murabaha companies to acquire real estate finance assets or related rights from mortgage finance companies, provided the outstanding financing amount does not exceed 85% of the property value for first-home contracts with partial or no recourse. The directive mandates continued compliance with prior circular No. 371000064719 for non-first-home financing and explicitly validates acquisitions under both recourse and partial-recourse disposal structures. Domestic financial institutions must apply these parameters when executing acquisition agreements with licensed mortgage finance entities.
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