Dr. Mohammed Omran:
• Spreading awareness of the importance of mortgage finance needs more attention from service providers.
• Integration of non-banking financial services is a positive step towards financial inclusion.
Dr. Mohammed Omran, FRA’s Chairman held a meeting with members of the Board of Directors of the Egyptian Union for Real Estate Financing to discuss conditions of mortgage finance market in Egypt and the challenges facing the growth of this sector. Also, the meeting discusses ways to develop mortgage finance in line with the capabilities and expectations from this important and vital sector. During the meeting, Dr. Omran revealed the strategy of the Authority for the next four years. He pointed out that FRA’s Strategy aims to increase the share of mortgage finance activity in the Egyptian market and what is expected from mortgage finance companies and introduce marketing plans to attract new segments of investors to mortgage companies as a national target. He added that the results of mortgage finance activity in the first nine months of 2017 amounted to 8.2 billion pounds compared to 6.6 billion pounds during the same period last yea representing a rise by 24.9% and this shows clearly the existence of a future request.
The attendees reviewed the importance of integration in non-banking financial services related to mortgage finance activity, mainly the insurance activity, which provides insurance coverage against the risk of death or deficit, in addition to insurance against the risk of loss of property and risk of non-payment, all these are essential guarantees for different parties in mortgage finance system and achieves the public interest and reassurance in the dealers against the risks expected.
Dr. Omran stressed that mortgage finance companies shall provide financing to the process of purchasing and selling previously delivered properties without relying solely on new units purchased from real estate developers, in light with the large segment that deals with this type of operations and its urgent need for financing. The Egyptian Union for Real Estate Financing pledged to provide an integrated study to the Authority on their vision and proposals to meet the challenges facing mortgage finance industry and ways to address them and mechanisms to develop the system and expand beneficiaries.
Also, FRA’s Chairman stressed that the Egyptian Union for Real Estate Financing shall prepare a strategy to raise awareness of the mortgage finance system among members of the community and urges different segments of society to deal with real estate through mortgage finance mechanism.
As part of the Authority’s keenness to communicate with all parties, the attendees agreed to hold a coordination meeting between the representatives of the Egyptian Mortgage Finance Union and some members of the Mortgage Finance Advisory Committee and representatives of the real estate developers to present different points of view to all parties and discuss ways to promote mortgage finance industry.