Based on the powers granted to the Central Bank under the Real Estate Financing Law issued by Royal Decree No. (M/50) dated 13/8/1433H, and its executive 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 executive regulations issued by Central Bank Governor Decision No. (1/T.S.M) dated 10/4/1434H. According to Article Seventy-Six of the executive regulations of the Finance Companies Control Law, which states: "2- A finance company shall not dispose of financing assets or the rights arising therefrom in any manner except in accordance with the rules issued by the institution in this regard," and Paragraph Five of the updated rules for disposing of financing assets or the rights arising therefrom, issued in Circular No. (60558/99) dated 9/10/1440H, which states: "The institution may exempt some operations for disposing of financing assets or the rights arising therefrom from some provisions of these rules if it deems that their nature or size warrants it."

The Central Bank has decided to allow the Saudi Real Estate Refinance Company to purchase residential mortgage portfolios from real estate lenders after a minimum of three months from the date of 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 lender for six months from the date of financing.