Sector Overview

Mortgage sector suffers from the lack of specialized mortgage financing companies where dealing in the primary market is limited to banks only. Some of these banks rely on their own resources to finance mortgage-lending activities, whereas others refinance their loans through the secondary mortgage financing market. Tow companies operating in this market are: “Palestine Mortgage and Housing Company” (PMHC), which was founded as a public company in 1999 and its subsidiary “Palestinian Finance Mortgage Company” (PFMC).
With regard to the secondary market, its funding resources are limited since refinancing companies do not issue loan bonds or bonds consolidated by securities assets; noting that these bonds require a specific law for their issuance.
The year 2017 did not witness a significant development concerning the legal environment of the mortgage financing law, as it is under accreditation with the Council of Ministers. During the same year, a review of the instructions No. “3” for the year 2012 on licensing Mortgage Finance Appraisers was revised in order to ensure that they conform with the market changes and developments within the Palestinian society. Regarding the mortgage companies operating in the Palestinian market, PMHC and its subsidiary PFMC, remain the only companies operating in the mortgage financing sector, particularly the secondary market (mortgage refinancing), due to the available liquidity within the banks operating in the Palestinian lands and the expansion of informal activity in real estate financing.
For the purpose of creating an enabling environment for the work and growth of the mortgage finance sector, a national team consisting from different ministries and official institutions was formed in order to implement the Sustainable Development Agenda goals 2015-2030 (which includes a total of 17 goals), particularly goal No. “11: Making cities and settlements sustainable and inclusive to all”. Two representatives from PCMA have been assigned to work with the team in order to achieve the goals of the Sustainable Development Agenda, thus contributing to the achievement of the main goal No. “11”, by ensuring that everyone has access to adequate, safe and affordable housing and services.
PCMA focused its efforts on granting license to qualified and experienced real estate appraisers in a manner that conforms to the instructions No. “3” for the year 2012 on Licensing Mortgage Finance companies. Accordingly, PCMA in cooperation with the Palestinian Banking Institute organized a training course in real estate appraisal during 2017. The number of participants was 14 people.
During 2017, 3 new real estate appraisers were licensed (out of which 1 was in the Gaza Strip), thus bringing the number of licensed real estate appraisers to 54.