Regulatory Alerts2011-06-17
Added · Updated
Reverse Mortgage Programme Annex 1: Detailed Guidance
The Hong Kong Monetary Authority issues detailed guidance for Authorized Institutions on underwriting, capital adequacy, and loan classification for Reverse Mortgage Programme loans. Institutions must exclude the Internal Ratings-Based approach for capital calculation, instead utilizing the Standardized approach with recognized HKMC insurance protection, while maintaining prudent underwriting controls over legal title and repayment capacity. The guidance further clarifies that RMP loans are measured at amortised cost for accounting purposes and require specific impairment assessments based on the financial strength of the Hong Kong Mortgage Corporation.