The Egypt Financial Regulatory Authority issued a board decision updating the rules for mortgage finance companies’ purchase of real estate developers’ receivables portfolios, including allowing partial purchases and lowering the required level of customers’ prior payment performance to 10% of the unit price from 20% as a condition for portfolio assignment. The updated framework allows licensed mortgage finance companies to buy part of developers’ financial-rights portfolios arising from customer sales, and requires the assignor to deliver all sale-related documents to the financier, including the investor file, original sale contracts and original debt instruments. Where only part of the debt instruments is purchased, the remaining instruments must be disposed of for the benefit of the same transferee and cannot be transferred to any other party until the assigned portfolio has been fully repaid, a structure intended to help manage asset-liability maturity mismatches. Mortgage finance companies must also verify an investor’s ability to pay instalments by reviewing income data, and may use a full year of prior regular payment history as a basis for verification; alternatively, the paid amounts toward the unit price should be at least 20%, which may be reduced to 10% if payments have been regular since financing began and a licensed credit bureau report indicates regular repayment. The decision also references continued compliance with applicable residential and non-residential mortgage finance ratios, including the maximum 90% for residential purposes.

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