Saudi Real Estate Refinancing Company (SRC) said it has signed an agreement with country's top bank National Commercial Bank (NBC) for a mortgage portfolio acquisition.
The partnership agreement is a first of its kind between SRC and a Saudi bank to support home buyers and boost opportunities for home ownership which was signed in the presence of Majed Al Hugail, Minister of Housing and Chairman at SRC.
The pact will pave way for more market liquidity which will be provided to homebuyers through NCB, said Senior VP Hamed Mohammed Fayez after signing the deal with SRC CEO Fabrice Susini in the presence of bank CEO Saeed Al Ghamdi and a number of senior officials.
The partnership with NCB follows agreements signed by SRC last year with three mortgage finance companies.
SRC has SR3 billion ($800 million) of funding to spend on mortgage portfolio acquisition and short-term warehousing finance to create the market conditions to allow banks to offer more home loans.
Susini stressed that signing this agreement with NCB supports homebuyers, as it supports SRC’s goal to enable lenders to provide housing finance solutions at more affordable rates.
It brings greater liquidity and stability to the secondary mortgage market. He also stressed that this agreement is a live example to highlight the role of SRC in unlocking the housing market, noted the top official.
“Our relationship with NCB goes beyond portfolio acquisition and, as a facilitator and not a competitor. We hope this is one of many agreements with other Saudi banks and financial institutions to enable lenders to provide more accessible home buying solutions,” he added.
Al Ghamdi said the SRC tie-up was directly aligned with one of NCB’s key strategic priorities for 2018 to position the bank as the preferred funding partner for home loans through supporting national housing initiatives.
The mortgage portfolio acquisition by SRC accelerates the development of an effective secondary home loan market in Saudi Arabia, he added.-TradeArabia News Service