SRC seals co-op deal with US Ginnie Mae

Saudi Real Estate Refinance Company (SRC), wholly owned by the Public Investment Fund (PIF), has announced that it has entered into a cooperation and experience-sharing agreement with the US Government National Mortgage Association (Ginnie Mae), a government-owned corporation operating within the Department of Housing and Urban Development.

The agreement aims at sharing best practices and experiences within the framework of policies and regulations in the housing finance sector. The collaboration is intended to support affordable housing at low-profit margins.

The agreement will cover three key areas. Firstly, bilateral dialogues will be conducted with housing finance regulatory and policy agencies. Secondly, experts will engage in roundtable discussions to delve into policies, financial management, and counter-party risk. Lastly, there will be opportunities for professional training and exchange on technical matters pertaining to policy objectives, mortgage securitization, capital market risk management, real estate finance, and taxation. In addition to SRC, other institutions working in the real estate financing sector in Saudi Arabia will have the opportunity to participate in technical and policy discussions as the agenda takes shape.

The Saudi Real Estate Refinance Company (SRC) was established in 2017 by the Public Investment Fund (PIF) as part of the Kingdom's Vision 2030 Housing Program, to act as a foundation and catalyst for the growth and sustainability of residential real estate financing in the Kingdom. SRC obtained a license from the Saudi Central Bank to operate in real estate refinancing through the secondary market, and aims to provide refinancing solutions, provide liquidity, and support financiers to increase the availability of affordable housing finance options for Saudi citizens. Since its inception, SRC has actively participated in the capital markets, contributing to the development of the financial sector, and supporting the diversification of the national economy.

Established by the US Congress in 1968 under the National Housing Act, Ginnie Mae's primary function is to provide government guarantees for mortgage-backed securities issued by private financial institutions. Currently, Ginnie Mae's outstanding portfolio of mortgage-backed securities has reached approximately $2.4 trillion, accounting for 25-30% of the U.S. mortgage market.