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. Two companies operate in this market: "Palestine Mortgage and Housing Company" (PMHC), founded as a public company in 1999 and its subsidiary " Palestinian Finance Mortgage Company."
 
The secondary market funding resources are limited since refinancing companies do not proceed to issuing loan bonds or bonds consolidated by securities assets noting that these bonds require a specific law for their issuance.
 
The Authority has issued in 2007 licensing instructions for mortgage financing companies and real estate professionals as well as instructions such as "capital adequacy "and "mortgage loans allocations " to regulate the work in the market.
 
The mortgage finance sector did not observe any regulatory changes during 2015 as the mortgage finance law was not endorsed during the year. Nevertheless, PCMA, in cooperation with the main stakeholders, reviewed instructions and mechanisms pertaining to the activities of the sector. The revised instructions covered the capital adequacy, provisions, and credit criteria of mortgage finance companies. In addition, the directorate reviewed the criteria used for appraising the market value of lands in Palestine.
 

Year 2016 had not seen a significant development concerning the legal environment of the mortgage financing law, as it is under accreditation with the Council of Ministers.

The PCMA focused its efforts on licensing qualified real estate appraisers in a manner that conforms to the real estate appraisal licensing instructions approved in 2012. Accordingly, PCMA in cooperation with the Palestinian Banking Institute organized a training course in real estate appraisal during 2016. The number of participants was 14 person and the success rate in the exam was 57%.

During 2016, 6 new real estate appraisers were licensed, bringing the number of licensed real estate appraisers to 51, out of which six were in the Gaza strip.