Allowing the Saudi Real Estate Refinance Company to Purchase Residential Mortgage Portfolios from Real Estate Financiers after a Minimum of Three Months from the Date of Granting the Financing Related to those Assets
| No: 611080000099 | Date(g): 16/6/2019 | Date(h): 13/10/1440 | Status: In-Force |
Translated Document
Based on the powers vested to SAMA under the Real Estate Finance Law issued by Royal Decree No. (M/50) dated 13/8/1433 H, and its implementing regulations issued by Minister of Finance Decision No. (1229) dated 10/4/1434H, and the Finance Companies Control Law issued by Royal Decree No. (M/51) dated 13/8/1433H, and its Implementing regulations issued by SAMA Governor Decision No. (1/MSht) dated 10/4/1434 H. According to Article Sixty-Seven of the Implementing regulations of the Finance Companies Control Law, which states: "2- A finance company may not dispose finance assets or right arising therefrom in any form except in accordance with the rules issued by SAMA in this regard," and Paragraph Five of the updated rules governing disposal of finance assets or their contractual rights, issued in Circular No. (60558/99) dated 9/10/1440 H, which states: " SAMA may exempt certain transactions of disposal of finance assets or their contractual rights from certain provisions of these rules when it deems that their nature or volume warrant such exemption."
SAMA has decided to allow the Saudi Real Estate Refinance Company to purchase residential mortgage portfolios from real estate financiers after a minimum of three months from the date of granting the financing related to those assets, or three months from the date of receiving the first installment from the beneficiary, whichever is later, with the right to recourse against the financier for six months from the date of financing.