Based on the Capital Market Authority Law No. (13) of 2004, the PCMA undertakes the supervision and oversight of the mortgage financing sector. This stems from its primary goal of creating a suitable environment to achieve capital stability and growth while protecting investors’ rights. This is accomplished by establishing the legislative framework governing the mortgage financing sector, which includes real estate appraisers.
Banks dominate the primary market (direct lending to citizens) in the mortgage financing sector due to the high liquidity of the Palestinian banking sector, the low cost of deposits (the main source of bank financing), and their widespread branch network. This poses a challenge for mortgage financing companies in competing and operating within the direct (primary) market of the mortgage financing sector.
As for the secondary market (the refinancing of loan portfolios granted by banks to citizens) in the mortgage financing sector, the Palestine Mortgage and Housing Corporation continues to operate through its financial arm, the Palestinian Mortgage Finance Company. This company has significantly contributed to the expansion and growth of the mortgage financing market by refinancing the mortgage loan portfolios of banks. However, due to the availability of liquidity in banks, the provision of financing facilities, and the increase in informal activity in real estate financing, the activity in the secondary market represented by the Palestine Mortgage and Housing Corporation for refinancing mortgage loans has declined.
