What is PMRC?
Pakistan Mortgage Refinance Company (PMRC) is a liquidity facility that provides refinance/prefinance to Primary Mortgage Lenders (PMLs) to promote housing finance.
What is Liquidity Facility?
A specialized financial institution offering medium to long term financing against a pool of mortgages/assets as security.
What is the purpose of PMRC?
Development of primary mortgage market by providing medium & long-term funds and to promote sound mortgage lending practices.
Who can avail refinancing from PMRC?
Primary mortgage lenders/financiers providing financing to financial institutions (FIs) either Conventional or Islamic such as Banks/DFIs/HFCs/MFBs/MFIs/NBFCs with housing finance portfolio or those FIs that intend to enter the housing finance space and are regulated by either SBP or SECP.
Does PMRC offer Islamic mode of financing to FIs?
Yes. PMRC offers financing to Islamic Financial Institutions (IFIs) in Islamic (Shariah-compliant) manner.
What is Refinance?
Refinance is provided against existing housing finance portfolio of Primary Mortgage Lenders (PMLs).
What is Prefinance?
Prefinance is provided to Primary Mortgage Lenders (PMLs) that intend to generate housing loan portfolio.
What is MRA/MMA?
- Master Refinance Agreement (MRA) is legal agreement between PMRC and Conventional primary mortgage lenders to cover the covenants of refinancing.
- Master Musharakah Agreement (MMA) is legal agreement between PMRC and Islamic (Shariah-compliant) primary mortgage lenders to cover the covenants of refinancing.
- Both MRA/MMA is only signed once by PML.
What advantage/benefit will bank have for sign of MRA/MMA?
- By signing MRA, primary mortgage lender/financier can avail financing facility from PMRC in conventional manner.
- By signing MMA, primary mortgage lender/financier can avail financing facility from PMRC in Islamic (Shariah-compliant) manner.
Does signing of MRA/MMA requires any regulatory approval?
For signing of MRA/MMA, approval from the BOD of primary mortgage lender is required.
Who will bear the cost of signing MRA/MMA and stamp duty on agreement?
Primary mortgage lenders will bear the stamp duty cost on MRA/MMA and other agreements.
Does PMRC have any obligation in terms of servicing the portfolio?
No. Servicing of loan portfolio is the responsibility of Primary Mortgage Lenders (PMLs).
What is a Collection Account?
An account opened on asset side of bank to reflect the mortgage loan receivables in relation to each refinance loan. PMRC shall have a lien on the collection account. Utilization consent will be provided to PML to utilize those funds.