Mortgage Finance

Course details

This course covers the roles of the different departments within the mortgage finance entity (company or bank) and the role of the different players / partners within the mortgage finance industry, with a focus on Egypt. It also covers mortgage loan production, the secondary mortgage market, securitization, and the relevant Egyptian legislation.

Course Description:

This course covers the roles of the different departments within the mortgage finance entity (company or bank) and the role of the different players / partners within the mortgage finance industry, with a focus on Egypt. It also covers mortgage loan production, the secondary mortgage market, securitization, and the relevant Egyptian legislation.

Course Objectives:

• Define mortgage finance.
• Identify the players in the mortgage industry.
• Specify the mortgage loan products.
• Explain Mortgage Finance Law No. 148 and its executive statutes.
• Explain real estate calculations.
• Define the loan production operation and loan underwriting.
• Define securitization and the secondary market.
• Describe the administration of mortgage loans.

Course Outline:

Module 1: Introduction to Mortgage Finance

• Introduction to mortgage finance
• The function of the mortgage finance sector
• The benefits of a robust mortgage market

Module 2: Players in the Mortgage Industry

• The major players in the mortgage industry
• Mortgage industry operations
• How mortgage companies realize a profit

Module 3: Mortgage Loan Products

• The balance law of the mortgage finance sector
• The difference between retail and wholesale lending
• The basic principles of mortgage lending

Module 4: Mortgage Finance Law No. 148 and its Executive Statutes

• The basic terms of the law
• Rights of the borrower
• Tri-party agreement
• The executive statutes and amendments thereto
• Loan registration
• How to record a real estate claim

Module 5: Real Estate Calculations

• Loan value vs. real estate value
• Calculating the maximum housing subsidy
• Calculate the maximum loan amount
• Calculating the settlement cost
• Determining the funds required for the settlement process

Module 6: Production Operations and Underwriting

• The role of the underwriting operation in the mortgage finance industry
• Risk analysis
• Capacity to repay the loan
• Collateral
• Determining the level of risk
• The potential changes in the mortgage finance sector

Module 7: Securitization and the Secondary Market

• The global credit market and financial intermediaries
• Short-term financing: money market
• Long-term financing: capital market
• The functions of the secondary market
• 81:/pricing the securities
• The concept of securitization
• Types of bonds
• The advantages of securitization
• Securitization in Egypt
• How to prepare for securitization

Module 8: Loan Administration

• What is loan administration?
• How loan administration generates revenue
• The objectives of loan administration
• Mortgage loan insurance
• How to manage payment failure

Assessment Strategy:

Participants will be informally assessed on their interaction during sessions and their participation in exercises