October 13, 2016


mortgageMortgage finance is governed in Egypt by Law No. 140 which was issued in August, 2001 (the Law).According to the Law, mortgage finance is interpreted as a method for financing the purchase, construction, restoration and/or development of houses, administrative units, service foundations and any buildings designated for practicing trade.

The EFSA is assigned to supervise mortgage finance activities in which the following main market players are involved:

  • Mortgage finance companies.
  • The Egyptian Mortgage Refinance Company (EMRC).
  • Securitization authorities.
  • Mortgage finance intermediaries.
  • Mortgage finance appraisers.
  • Mortgage finance agents Auditors.
  • The credit bureaus and insurance companies, which act as parties complementing the mortgage finance process.

EFSA Role in Mortgage Finance

EFSA is authorized to supervise the mortgage finance affairs, set the controls ensuring market efficiency, follow up, control and development, and undertake all the measures that maintain the rights of all market dealers. The EFSA is specifically assigned to:

  • Make the general policies required for directing mortgage finance activities.
  • Grant licenses to the mortgage finance companies for practicing activities.
  • Decide upon all applications submitted by companies regarding mergers, suspension of activities and/or total or partial liquidation of assets.
  • Keep and maintain schedules and registries for listing real estate appraisers, mortgage finance intermediaries and real estate agents, granting them licenses, supervising their activities; and for listing the related auditors.
  • Set the Financial Reporting Standards (FRS) for companies.
  • Control and supervise the companies and impose administrative penalties on violators.
  • Undertake anti-money laundering procedures.
  • Protect investors and dealers operating in the mortgage finance mark.

Mortgage Laws