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Origin and purpose
Palestine Mortgage and Housing Corporation was established in 1997 by an initiative from the Palestinian National Authority and a number of big Palestinian and International economical institutions, and it is considered to be one of the first mortgage companies that are specialized in financing the housing sector in the area.
Palestine Mortgage and Housing Corporation re-finances mortgage loans that are financed by its partner banks through its first subsidiary; Palestine Housing Finance Corporation, in addition the company insures against mortgage credit risk through its other subsidiary; Palestine Mortgage Insurance Fund.
The company aims to contribute to solving the housing problem in Palestine by providing long-term funding that enables citizens to borrow for periods up to 25 years. Thus, the company has contributed to strengthening the Palestinian economy to open the door to a lot of Palestinians to own homes which they could not previously possess with the current local market conditions before the company started operating.
The company primarily aims to providing insurance to banks in case of borrowers’ default, thus reducing the credit risk of lending institutions, which encourages them to finance the housing sector. It is worth mentioning that Palestine Mortgage Insurance Fund provides insurance coverage by up to 70% of net loss against defaulting.
Palestine Mortgage & Housing Corp. © 2008