Palestine Mortgage and Housing Corporation was established in 1997 by an initiative from the Palestinian National Authority in light of the huge demand for funding for the purposes of residential housing, and given the lack of financial institutions that deal in this type of credit.
The company’s capital is $ 20 million contributed by the Palestinian National Authority, Arab Bank and the International Finance Corporation in addition to a number of other investors. After establishing the company shortly, and in order to facilitate its work in the different areas, the company established two subsidiaries; the first specializing in refinancing and the second in insuring mortgage loans. Furthermore, the company has worked on contractual arrangements with some local banks to act as final liaison with clients in terms of managing the process of lending and recovery of overdue payments, and until today the company is still signing new Memorandum of Understandings and new contracts with new banks and some real estate companies in order to decrease interest given the current conditions and high competition on loans compared to banks. |
